USA: Dodd-Frank - 'say on pay' rules adopted by SEC

The Securities and Exchange Commission yesterday adopted rules regarding shareholder approval of executive compensation and 'golden parachute' compensation arrangements: see here. The SEC's rules state that 'say on pay' votes required under the Dodd-Frank Act must occur at least once every three years beginning with the first annual shareholders' meeting taking place on or after January 21, 2011. Companies are also required to hold a 'frequency' vote at least once every six years in order to allow shareholders to decide how often they would like to be presented with the 'say on pay' vote.