US Securities and Exchange Commission Issues Dodd-Frank Act Rule Proposal on Executive Compensation

    May 2015

    On April 29, 2015, the US Securities and Exchange Commission (SEC or Commission) held an open meeting to consider whether to propose amendments under Section 14(i) of the Exchange Act, as added by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), requiring registrants to disclose in a clear manner the relationship between executive compensation actually paid and the financial performance of the registrant (“Pay-Versus-Performance Proposal”).

    The Pay-Versus-Performance Proposal was approved by a 3-2 vote. Chair White, Commissioner Stein and Commissioner Aguilar voted in favor of the proposal, whereas Commissioner Gallagher and Commissioner Piwowar voted against the proposal.

    The public comment period will be 60 days after publication in the Federal Register.