On January 25, 2010, the Securities and Exchange Commission (“Commission”) published its final rules concerning the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to shareholder approval of executive compensation and “golden parachute” compensation arrangements. The principal aspects of the final rule are summarized below. Companies are required to comply with the rules regarding executive compensation for all shareholder meetings held on or after January 21, 2011, and with the rules regarding “golden parachute” compensation for all filings made on or after April 25, 2011. Companies that, as of January 21, 2011, qualify as “smaller reporting companies” will not be required to comply until January 21, 2013...
General
Section 951 of the Dodd-Frank Wall Street Reform and Consumer Protection Act created a new section of the Securities Exchange Act of 1934 (the “Exchange Act”) requiring that:
• not less frequently than every three years, shareholders must be given an advisory vote on executive compensation;
• not less frequently than every six years, shareholders must be given a vote on whether the advisory vote on executive compensation be held each year, every two years or every three years; and...
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