The SEC recently confirmed that the new CEO pay ratio disclosure rules mandated in the Dodd-Frank Act will go into effect in the 2018 proxy season. To assist companies in preparation of the new disclosure, the SEC published interpretive guidance on September 21, 2017.
On October 18, 2010, the U.S. Securities and Exchange Commission (SEC) issued proposed rules regarding shareholder advisory votes on executive compensation and golden parachute arrangements under Section 951 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). There are three separate shareholder advisory votes under Section 951 that are covered by the proposed rules:
“Say-on-Pay Vote” – voting on whether to approve the compensation of named executive officers as disclosed under federal securities law.
“Say-on-Frequency Vote” – voting at least once every six years on whether the say-on-pay vote should occur every one, two or three years.
“Say-on-Parachutes Vote” – voting on whether to approve so-called golden parachute compensation in connection with a business combination.
For more information and analysis regarding how the rules could affect the 2011 proxy season, click here.
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