In Equilar’s recent issue of C-Suite Magazine, Dan Martec, Editor-in-Chief, discusses the future of shareholder engagement and the impact on companies. In his article, Be Prepared to Perform, Martec explains that while typically 75% of companies pass their Say-on-Pay vote, shareholders will continue to demand more transparency. And because there is a concern about the shift in balance of power, identifying and addressing shareholder concerns is critical. Here are a few ways to be prepared.
Clawback provisions, referring to money or benefits that can be taken back as a result of special circumstances, are no new concept in the world of executive compensation. However, in a recent press release, the SEC proposed rules that would require companies to adopt and comply with a compensation recovery policy. This SEC proposal marks the final outstanding regulation required by the Dodd-Frank Act of 2010. Here is a bit of detail surrounding the proposed listing standards.