Executive Compensation

Executive Compensation: Say-on-Pay

This week the SEC approved the non-binding say-on-pay rule. This is one component of the executive compensation provision of the Dodd Frank Act, a comprehensive financial regulatory reform enacted due to the collapse and near demise of many industry giants, namely Lehman Brothers and AIG. The executive compensation provision restricts executive pay in order to discourage companies from awarding lucrative packages that encourage risky behavior.

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