Say-On-Pay: SEC Proposals For TARP Recipients

Law360, New York (August 4, 2009, 4:59 PM EDT) -- On July 1, 2009, the U.S. Securities and Exchange Commission released its initial proposed rules to address the inclusion of "say-on-pay" proposals in the proxy statements of those companies that received federal assistance under the Troubled Assets Relief Program.

In accordance with the requirements of Section 111(e) of the Emergency Economic Stabilization Act of 2008, as amended ("EESA"), companies receiving financial assistance under TARP must permit a separate advisory shareholder vote to approve the compensation of their executives. These nonbinding votes are known as "say-on-pay" proposals....
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