Ensuring fairness, transparency, and accountability in business practices through the Protected Corporations Act.
Learn MoreThe Protected Corporations Act introduces a series of groundbreaking reforms designed to reshape corporate governance by promoting equity in executive compensation, enhancing financial transparency, and fostering deeper stakeholder engagement. By addressing some of the most pressing issues in modern corporate structures, the Act sets a new standard for sustainable, ethical business practices.
The Act introduces a tier-based compensation model that sets pay across different levels of the organization, ensuring a balanced and fair distribution of income. CEO and C-suite compensation is capped at multiples of the average salary of Tier 1 employees, with limits ranging from 60x for small companies to 150x for very large companies. This structured approach promotes equity, reduces income inequality, and aligns executive incentives with long-term, responsible decision-making.
The Act ensures full visibility into a company's market capitalization by requiring corporations to reflect real-time valuations of their outstanding shares through mark-to-market accounting. This approach provides a clear view of a company's value in current market conditions, offering a more accurate representation of its financial standing. Corporations are also required to disclose a Supplemental Unofficial Balance Sheet, a non-GAAP financial statement that includes entries like "Excess Capitalization" and "Market Capital Premium (Deficit)," providing stakeholders with additional context regarding the company’s market valuation. These measures enhance transparency, helping stakeholders accurately assess the true market value of the company.
Recognizing the importance of broader stakeholder involvement, the Act requires corporations to regularly engage with their key stakeholders—including employees, customers, and the community—on critical corporate decisions. To ensure representation across all levels of the organization, an employee from each tier will be elected to the board, allowing for diverse perspectives in the decision-making process. This democratization of corporate governance ensures that a company’s decisions reflect a wider array of interests, reducing the dominance of shareholders and encouraging more inclusive, socially responsible corporate actions.
A major innovation of the Act is the creation of the Protected Corporations Stock Exchange, where companies adhering to the Act’s higher governance and transparency standards will be listed. This specialized exchange operates on a simple auction model—rather than the traditional bid/ask system—allowing shares to be sold at a single, transparent price. Additionally, there is a mandatory 10-day holding period after each transaction, preventing speculative trading and encouraging long-term investment. These features ensure that investors are aligned with companies committed to ethical practices, sustainability, and long-term corporate health. The exchange provides a clear signal to the market, separating companies that embrace responsible business practices from those primarily focused on short-term profit.
The Steering Committee for the Protected Corporations Act comprises dedicated industry leaders, legal experts, and corporate governance advocates working together to drive the adoption of the Act. United by a shared mission, the committee is committed to bringing meaningful reform to corporate governance, ensuring that businesses are held to higher standards of transparency, responsibility, and accountability.
As an unincorporated association organized in the County of Hays, Texas, the Steering Committee operates solely on constituent advocacy, functioning transparently and in compliance with all applicable legal and ethical standards without engaging in regulated lobbying activities or conflicts of interest.
Here is our leadership team:
Principle Architect of Protected Corporations
Co-Designer of Protected Corporations
Author, Speaker, Coach
Flip Your Thinking
Your support is crucial to ensuring the success of the Protected Corporations Act.
By advocating for this vital legislation, you can help bring about a new era of corporate fairness and transparency. Here’s how you can get involved:Stay informed about the Protected Corporations Act with our collection of resources. Here you will find the full text of the Act, relevant research, and press releases.
Drafting and submission of the Protected Corporations Act to the Texas Legislature.
Legislative hearings, advocacy campaigns, and public awareness efforts.
Initial corporate transitions begin under the Act.
Launch of the Protected Corporations Stock Exchange, marking a new era in corporate governance.
The timeline highlights the strategic journey of the Protected Corporations Act, from its initial drafting and legislative submission in 2024 to the anticipated launch of the Protected Corporations Stock Exchange in 2028. Each step represents a significant phase in redefining corporate governance, enhancing transparency, and aligning corporate practices with ethical standards.
If you have any questions, feedback, or want to get involved with the Steering Committee for the Protected Corporations Act, please reach out to us.