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Stock Buyback Reform and Worker Dividend Act of 2019

USA116th CongressS-2391| Senate 
| Updated: 11/17/2020
Sherrod Brown

Sherrod Brown

Democratic Senator

Ohio

Banking, Housing, and Urban Affairs Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Stock Buyback Reform and Worker Dividend Act of 2019 This bill revises requirements related to stock buybacks (i.e., a company repurchasing shares of common stock). Specifically, issuers of securities must provide an annual dividend to non-executive employees in certain circumstances. The calculation of this dividend is based on (1) the amount the issuer spends on stock buybacks, (2) increases in dividends, and (3) any special dividends. Additionally, an issuer is prohibited from repurchasing shares unless details of the buyback are disclosed to the Securities and Exchange Commission (SEC), including the rationale for the repurchase. The buyback must also comply with certain purchasing requirements. The bill lowers the allowed daily amount of repurchased shares. Executive officers may not sell shares for seven days beginning on the date of an announced buyback, subject to certain exceptions. The SEC may enforce these provisions. Employees are afforded a private right of action against an issuer regarding required employee dividends.
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Timeline
Jul 31, 2019
Introduced in Senate
Jul 31, 2019
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Nov 17, 2020
Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 116-456.
Nov 17, 2020
Committee on Banking, Housing, and Urban Affairs. Hearings held.
  • July 31, 2019
    Introduced in Senate


  • July 31, 2019
    Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.


  • November 17, 2020
    Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 116-456.


  • November 17, 2020
    Committee on Banking, Housing, and Urban Affairs. Hearings held.

Finance and Financial Sector

Civil actions and liabilityCorporate finance and managementEmployee benefits and pensionsEmployment discrimination and employee rightsInterest, dividends, interest ratesSecurities

Stock Buyback Reform and Worker Dividend Act of 2019

USA116th CongressS-2391| Senate 
| Updated: 11/17/2020
Stock Buyback Reform and Worker Dividend Act of 2019 This bill revises requirements related to stock buybacks (i.e., a company repurchasing shares of common stock). Specifically, issuers of securities must provide an annual dividend to non-executive employees in certain circumstances. The calculation of this dividend is based on (1) the amount the issuer spends on stock buybacks, (2) increases in dividends, and (3) any special dividends. Additionally, an issuer is prohibited from repurchasing shares unless details of the buyback are disclosed to the Securities and Exchange Commission (SEC), including the rationale for the repurchase. The buyback must also comply with certain purchasing requirements. The bill lowers the allowed daily amount of repurchased shares. Executive officers may not sell shares for seven days beginning on the date of an announced buyback, subject to certain exceptions. The SEC may enforce these provisions. Employees are afforded a private right of action against an issuer regarding required employee dividends.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Jul 31, 2019
Introduced in Senate
Jul 31, 2019
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Nov 17, 2020
Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 116-456.
Nov 17, 2020
Committee on Banking, Housing, and Urban Affairs. Hearings held.
  • July 31, 2019
    Introduced in Senate


  • July 31, 2019
    Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.


  • November 17, 2020
    Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 116-456.


  • November 17, 2020
    Committee on Banking, Housing, and Urban Affairs. Hearings held.
Sherrod Brown

Sherrod Brown

Democratic Senator

Ohio

Banking, Housing, and Urban Affairs Committee

Finance and Financial Sector

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Civil actions and liabilityCorporate finance and managementEmployee benefits and pensionsEmployment discrimination and employee rightsInterest, dividends, interest ratesSecurities