On Wednesday, July 21, 2010, President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. The legislation, which contains sweeping reforms applicable to the financial services sector, also includes a number of provisions that will affect executive compensation and corporate governance policies and practices. For a summary of these provisions, see our Thoughtful Pay Alert, Congress Agrees on Executive Compensation Reforms (June 28, 2010).
A Timely Teleconference
To Help You Prepare for the Dodd-Frank Act’s New Executive Compensation and Corporate Governance Provisions
The following table is intended to assist you in identifying to which type of company each provision applies and when it becomes effective:
Note that, in addition to the foregoing, there are several new provisions that apply exclusively to financial institutions, including additional disclosure about compensation and risk, the creation of a risk committee at publicly-traded bank holding companies, and the recovery of executive and director compensation paid by systematically significant failing financial companies.
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.