S.2391 - Stock Buyback Reform and Worker Dividend Act of 2019116th Congress (2019-2020)
|Sponsor:||Sen. Brown, Sherrod [D-OH] (Introduced 07/31/2019)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Committee Meetings:||11/17/20 10:00AM|
|Latest Action:||Senate - 11/17/2020 Committee on Banking, Housing, and Urban Affairs. Hearings held. (All Actions)|
This bill has the status Introduced
Here are the steps for Status of Legislation:
Summary: S.2391 — 116th Congress (2019-2020)All Information (Except Text)
Introduced in Senate (07/31/2019)
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.