On May 20, 2010, the United States Senate approved its proposed legislation to reform the financial services industry, the “Restoring American Financial Stability Act of 2010.” (While the legislation has the same bill number as the legislation approved by the House of Representatives in December 2009, the “Wall Street Reform and Consumer Protection Act of 2009,” the bill’s content reflects the proposals that were introduced by Senator Christopher J. Dodd (D-CT) earlier this year and amended in the Senate over the past several weeks.)
The provisions of the bill now need to be reconciled with the House version. As the present time, it is expected that a House-Senate conference committee will be appointed to work out the differences between the two pieces of legislation, with the goal of sending a final bill that has been approved by both bodies to President Obama for his signature by the Fourth of July.
Both bills contain several significant reforms that will affect corporate governance and executive compensation policies and practice. To assist you in monitoring the status of these reforms, we summarize the relevant provisions from the current versions of the House and Senate bills in the PDF below. This article updates our previous Thoughtful Pay Alert, Comparing the Executive Compensation Reform Proposals, dated March 31, 2010.
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Compensia has had significant experience in helping companies to design and implement their executive compensation programs. If you have any questions on the subjects addressed in this Thoughtful Pay Alert or would like assistance in assessing their likely impact on your executive compensation plans and arrangements, please feel free to contact us.