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SEC Proposes Rules Regarding Pay-versus-Performance Disclosure

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) includes provisions that are designed to address shareholder rights and executive compensation practices. One such provision is Section 953(a), which directed the Securities and Exchange Commission to adopt rules requiring public companies to disclose the relationship between executive compensation actually paid and the financial performance of the company. On April 29, 2015, the SEC proposed rules to implement Section 953(a). The proposed rules are subject to a public comment period and are not binding on public companies. Continue reading “SEC Proposes Rules Regarding Pay-versus-Performance Disclosure”