Executive compensation impact of the Dodd-Frank Act: considerations for the remainder of 2011 and for 2012

• Published in: Employee Benefit Plan Review 2011-08, Vol.66 (2), p.22
• Main Author: Stapel, Julie K
• Format: Article
• Language: English
• Subjects: Chief executive officers; Clawback; Conflicts of interest; Consultants; Disclosure; Disclosure (Securities law); Employees; Equity funds; Executive compensation; Legal counsel; Limited partnerships; New stock market listings; Private equity; Provisions; Proxy solicitation; Proxy statements; Public companies; SEC filing requirements; Stock exchanges; Stockholders; Wall Street Reform & Consumer Protection Act 2010-US
• ISSN: 0013-6808

Pres Obama signed the Dodd-Frank Act (Dodd-Frank) into law on Jul 21, 2010. Most of the executive compensation provisions of Dodd-Frank, however, do not go into effect on their own but rather require the Securities and Exchange Commission (SEC) to make certain changes to registration requirements under the Securities Exchange Act of 1934 or require the national securities exchanges to make certain changes to their listing standards. The SEC proposed rules for the compensation committee independence requirement on Mar 30, 2011, and final rules are expected before September 2011. Meanwhile, Dodd-Frank will require issuers of securities to disclose in any proxy or consent solicitation material for an annual meeting whether any employee or director is permitted to purchase any financial instruments designed to hedge or offset a decline in the market value of employer securities held, directly or indirectly, by the employee or director.