SAN MARCOS, Texas, Sept. 20, 2024 (GLOBE NEWSWIRE) -- The legislative package for the Protected Corporations Act (PCA) has been submitted to key Texas lawmakers, including State Senator Judith Zaffirini (Senate District 21), State Representative Erin Zwiener (House District 45), Senate Committee on Business & Commerce Chair Senator Charles Schwertner, House Committee on Business & Industry Chair Representative Oscar Longoria, and Speaker of the Texas House of Representatives Dade Phelan.
The Protected Corporations Act introduces a corporate structure that measures success not just by profits but by integrity and fairness. Designed to position Texas as a leader in corporate reform, it incorporates innovative mechanisms that align stakeholder interests while setting the standard for responsible business practices. These include employee representation on the board, caps on CEO pay, the inclusion of the company’s market value on the balance sheet, and a proprietary stock exchange requiring a 10-day holding period after auctioning fully verified shares.
Addressing Key Corporate Governance Challenges
The PCA solves several critical challenges in corporate governance, such as:
- Lack of Accountability: By mandating employee representation and capping CEO pay, the PCA ensures corporate leadership is accountable to both employees and shareholders.
- Short-term Speculation: A proprietary stock exchange with a 10-day holding period prevents harmful short-term market manipulation and encourages sustainable investment.
- Opaque Financial Reporting: The inclusion of the company’s market value on the balance sheet increases transparency and allows stakeholders to understand a company’s true value.
Who Benefits from the PCA?
- Employees gain a stronger voice through board representation and benefit from fairer compensation.
- Shareholders are protected from market volatility and manipulation, and can invest with confidence.
- Communities will see more responsible corporate behavior, with companies focusing on sustainable and ethical growth.
This legislative package, now in the hands of Senator Zaffirini, Representative Zwiener, Senator Schwertner, Representative Longoria, and Speaker Phelan, is set to advance Texas as the gold standard in corporate governance and ethical business practices.
For more information, please contact:
Larry Lund
Steering Committee for the Protected Corporations Act
committee@PCAtexas.org
