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Say-On-Pay Forces Cos. To Rethink Exec Perks

Law360, New York (June 7, 2011, 6:11 PM EDT) -- With shareholders in U.S. public companies gaining a stronger voice when it comes to pay for top executives, companies that get a no-vote on their compensation proposals could see their pay packages challenged in court and their board members voted out, attorneys say.

The Dodd-Frank Wall Street Reform and Consumer Protection Act included a provision requiring nonbinding shareholder votes on executive compensation at publicly traded companies in the U.S., which the U.S. Securities and Exchange Commission quickly put in place.

Although the votes are merely advisory,...
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