Stroock Special Bulletin
"Congress’s Final 'Say On Pay'?"
The credit crisis focused extraordinary attention on the question of executive pay. Finally, after months of debate, Congress has passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Final Bill"), which includes a suite of proposals that will impact at least some of the pay-related considerations of most public companies, and in some cases, private companies (including investment managers) that are engaged in financial services.
Although this legislation may mark the final legislative chapter in the post-crisis effort to create greater transparency and promote more thoughtful deliberation concerning executive pay, one wonders whether this will be the last word. Many public companies continue to operate in multiple jurisdictions, many of which may impose a different set of restrictions on pay. And many companies may, depending on their industry, be subject to additional regulatory oversight, including financial institutions and those associated with health care.
With all that in mind, this Stroock Special Bulletin highlights the principal executive compensation related provisions of the Final Bill.