Wednesday, 20 October 2010

USA: SEC publishes rules on 'say on pay' and proxy vote reporting

The Securities and Exchange Commission has published rules regarding the introduction of an advisory vote on remuneration and the reporting of proxy voting by institutional investment managers: see, respectively, here (pdf) and here (pdf). A short commentary on the rules is available here, which explains:

Under the proposed rules implementing the Dodd-Frank Act, companies subject to the federal proxy rules would be required to provide shareholders with an advisory vote on executive compensation. Section 14A(a) of the Exchange Act, which was added under the Dodd-Frank Act, specifies that these votes, generally known as say-on-pay votes, are required at least once every three years beginning with the first annual shareholders' meeting taking place on or after Jan. 21, 2011".

See here for further information, from the SEC, concerning the implementation of the Dodd-Frank Act.

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