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Bill

HR 5019

CEO Accountability and Responsibility Act

119th Congress Introduced by Mark DeSaulnier and 2 co-sponsors

HR 5019 holds CEOs accountable by linking their pay to performance, enforcing clawback policies, and enhancing transparency, benefiting shareholders and employees.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 5019

Summary of HR 5019: CEO Accountability and Responsibility Act

Bill Number: HR 5019
Introduced On: August 22, 2025
Current Status: Introduced in House
Committees: Referred to the Committee on Ways and Means and the Committee on Oversight and Government Reform

Purpose and Intent

The CEO Accountability and Responsibility Act (HR 5019) aims to enhance corporate governance by holding Chief Executive Officers (CEOs) accountable for their companies' financial performance and ethical conduct. The bill seeks to establish clearer standards for CEO compensation and performance metrics, thereby promoting transparency and responsibility in corporate leadership.

Key Provisions

The bill includes several significant provisions designed to increase accountability among CEOs:

  1. Performance-Based Compensation:

    • Requires that a substantial portion of CEO compensation be tied to measurable performance metrics, such as revenue growth, profit margins, and employee satisfaction.
    • Establishes guidelines for what constitutes acceptable performance metrics.

  2. Clawback Policies:

    • Mandates that companies implement clawback policies, allowing them to reclaim bonuses or incentive pay if financial results are later found to be inaccurate or misleading.

  3. Disclosure Requirements:

    • Increases transparency by requiring companies to disclose the ratio of CEO compensation to the median employee salary.
    • Requires detailed reporting on the performance metrics used to determine CEO compensation.

  4. Board Oversight:

    • Strengthens the role of corporate boards in overseeing CEO performance and compensation decisions, ensuring that boards are composed of independent members.

  5. Ethical Conduct Standards:

    • Introduces standards for ethical conduct that CEOs must adhere to, with penalties for violations that could include fines or disqualification from serving as a CEO.

Who Would Be Affected

  • CEOs and Corporate Executives: The bill directly impacts how CEOs are compensated and held accountable for their companies' performance.
  • Shareholders and Employees: Increased transparency and accountability may lead to more equitable compensation structures and improved corporate governance, benefiting shareholders and employees alike.
  • Corporate Boards: Boards will have enhanced responsibilities in overseeing CEO performance and ensuring compliance with the new standards.

Procedural Aspects

  • The bill was introduced in the House on August 22, 2025, and has been referred to the Committee on Ways and Means and the Committee on Oversight and Government Reform for further consideration.
  • The timeline for further actions and discussions within these committees will be determined by the Speaker of the House.

Conclusion

HR 5019 aims to create a more accountable corporate environment by establishing clear standards for CEO performance and compensation. By enhancing transparency and ethical conduct, the bill seeks to protect the interests of shareholders and employees while promoting responsible corporate governance.

Compiled from official sources — confirm details with the bill’s official record.

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