The Advisors' Blog

– Broc Romanek

Over on TheCorporateCounsel.net this morning, John blogged about this memo from Rep. Jeb Hensarling that appears to lay out changes to the “Financial Choice Act.” John handicaps the odds of the Act being passed. It appears that the original executive pay provisions in the Choice Act remain mostly untouched in this revised version, including:

– Repeal of pay-ratio, say-on-pay frequency, employee & director hedging disclosure, board leadership structure disclosure
– Requirement to solicit say-on-pay votes only in those years “in which there has been a material change to the compensation of executives of an issuer from the previous year”
– Change making the Dodd-Frank no-fault clawback for erroneously awarded compensation applicable only where the “executive officer had control or authority over the financial reporting that resulted in the accounting restatement”