On March 21, 2010, the Senate Committee on Banking, Housing, and Urban Affairs approved the “Restoring American Financial Stability Act of 2010,” as introduced by the Committee’s Chairman, Senator Christopher J. Dodd (D-CT). At this time, the bill reflects the Senate’s primary vehicle for reforming the financial services industry.
Like its analog, H.R. 4173, the “Wall Street Reform and Consumer Protection Act of 2009,” which was passed by the House of Representative in December 2009, the bill contains a number of provisions that would increase the involvement of investors and regulators in executive compensation matters. If enacted into law, these provisions have the potential to dramatically alter the executive pay landscape.
The Dodd bill now goes to the Senate floor where it is likely to be amended (perhaps significantly) and, if eventually approved, must be reconciled with its House counterpart. Nonetheless, to enable you to monitor the progress of the executive compensation (and related corporate governance) reforms being debated in Congress, we summarize below the relevant provisions from the current versions of the House and Senate bills.
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