In a move that further weakens executives' influence over the setting of their compensation, public companies will soon face new requirements that they disclose any conflicts of interest involving their compensation consultants in their proxy statements.
The Securities and Exchange Commission mandated that U.S. stock exchanges propose new listing standards to that effect this September, standards that are to take effect next June.
Robin Ferracone, CEO of the executive compensation consultancy Farient Advisors, says the new standards are no surprise. “The SEC didn't depart much from what the Dodd-Frank Financial Reform Act called for so my sense is that most of this has already been taken into account by public company boards.”
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
