The final guidance on Sound Incentive Compensation Polices released by the federal banking agencies identifies key principles for reforming incentive compensation practices and the Dodd-Frank Act contains a number of significant executive compensation and corporate governance provisions. Please join Mayer Brown partners Maureen Gorman, Michael Hermsen, and David Sahr as they address the final guidance on Sound Incentive Compensation Policies and the provisions of the Dodd-Frank Act relating to executive compensation, including:
- The principles identified by the banking regulators as central to the maintenance of incentive compensation polices, including proper risk management and corporate governance, the organizations covered by the new rules and the categories of employees subject to the rules;
- New disclosure requirements with respect to executive compensation paid versus the financial performance of the company and comparison of the pay of the CEO to all other employees; and
- New corporate governance requirements with respect to shareholder votes on say-on-pay and golden parachutes, compensation clawbacks and stock exchange listing standards concerning compensation committee independence and their use of outside advisers.
Of Related Interest
Corporate Governance and Disclosure Implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act
Guidance on Sound Incentive Compensation Policies
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.