SEC Adopts Shareholder Say-On-Pay Rules

WASHINGTON (By Sarah N. Lynch) – Shareholders of publicly listed companies will get to weigh in on executive compensation through advisory votes, under a new rule adopted by U.S. securities regulators on Tuesday.The “say-on-pay” rules, appr…

WASHINGTON (By Sarah N. Lynch) – Shareholders of publicly listed companies will get to weigh in on executive compensation through advisory votes, under a new rule adopted by U.S. securities regulators on Tuesday.

The “say-on-pay” rules, approved in a 3-2 vote by the Securities and Exchange Commission, would implement a provision in the Dodd-Frank Wall Street reform law.

It is designed to give shareholders greater input over executive compensation after many investors expressed outrage during the financial crisis at lavish pay practices.

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