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The Executive Compensation Provisions of the Dodd-Frank Act by Compensia Principal, Mark Borges
The reform act provides for say-on-pay and say-on-golden-parachute shareholder advisory votes and enhanced independence for compensation committees and their advisers. It also requires new disclosures relating executive compensation to corporate performance and to median employee compensation, mandates clawbacks, and directs regulators to craft rules prohibiting incentive pay arrangements that create excessive risks for financial institutions. The act becomes effective in stages, starting in 2011.
(from the January 5, 2011 issue of The Review of Securities and Commodities Regulation)
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