USA: Senator Dodd's Restoring American Financial Stability Act of 2010

Senator Chris Dodd, the chairman of the Senate Banking Committee, yesterday published the text of his proposed Restoring American Financial Stability Act of 2010. Mark-up by the Committee is scheduled for March 22. A copy of the Act is available here (pdf) and a summary is available here (pdf).

With regard to corporate governance, the Act contains several provisions including, for example, the introduction of a non-binding 'say on pay' vote for shareholders; the requirement that compensation/remuneration committees contain only independent directors and the requirement for public companies to establish policies for the clawing back of executive compensation if found to be based on inaccurate financial statements not complying with accounting standards.