SEC Proposes Rules for Shareholder Advisory Votes on Executive Compensation and Golden Parachute Compensation
27 October 2010SEC Update
On 18 October the SEC proposed changes to its proxy and disclosure rules to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act requiring shareholder advisory votes on executive compensation and "golden parachute" compensation known as "say on pay," "say on frequency," and "say on golden parachutes." Although Section 951 of the Dodd-Frank Act established the key terms of the new vote requirements, the SEC's rule proposals provide much needed guidance on their administration. Comments on the proposed rules, which are described in Release No. 33-9153, must be submitted by 18 November 2010.