SEC Passes Say-On-Pay Rule In Tight Vote

Law360, New York (January 25, 2011, 3:23 PM EST) -- The U.S. Securities and Exchange Commission on Tuesday narrowly approved a rule that would give public companies' shareholders a vote on executive compensation packages and golden parachutes.

At an open meeting considering several proposed rules, three SEC commissioners said they supported say-on-pay votes and two said they did not. The rule is now subject to a 60-day public comment period before it becomes final.

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires shareholder advisory votes to approve the compensation of executives, and to set...
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