December 11, 2024

Warren Renews Fight for Economic Growth That Benefits Workers

Bill Text (PDF) | Bill One-Pager (PDF)

Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.) reintroduced the Accountable Capitalism Act to strengthen employee power and ensure America’s largest corporations pursue growth in a way that helps workers and consumers as well as shareholders. The legislation would help reverse harmful trends from the last 40 years that have encouraged large corporations to focus on short-term gains for a small group CEOs and shareholders over broader stakeholder interests and the long-term health of the workforce and economy.

Around 93% of American-held corporate shares are owned by just 10% of our nation’s richest households, while more than 40% of American households hold no shares at all. This means that corporate America’s commitment to “maximizing shareholder return” is a commitment to making the rich even richer, while leaving workers and families behind.

The Accountable Capitalism Act would implement the following requirements:

  • Corporations with more than $1 billion in annual revenue must obtain a federal charter as a “United States corporation,” obligating company directors to consider the interests of all corporate stakeholders, including employees and customers, in addition to shareholders. 
  • Any corporate political spending must be approved by at least 75% of a corporation’s shareholders and 75% of its Board of Directors, ensuring political expenditures benefit all corporate stakeholders.
  • At least 40% of a company’s Board of Directors must be selected by the corporation’s employees.
  • Directors and officers of United States corporations are prohibited from selling company shares within five years of receiving them or within three years of a company stock buyback.

“Workers are a major reason corporate profits are surging, but their salaries have barely moved while corporations' shareholders make out like bandits,” said Senator Warren. “Following the most lucrative election in history for special interests, my bill will empower workers to hold corporations to responsible decisions that benefit more than just shareholders.” 

Senator Warren first introduced the Accountable Capitalism Act in August 2018. 

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