Proposed Dodd-Frank Pay Versus Performance Rules
Written By Brad Smith
The Dodd-Frank Act was enacted in 2010 with intent to address shareholder rights and executive compensation practices. The Securities and Exchange Commission was directed as part of the Dodd-Frank Act to put in place a requirement that public companies disclose in their proxies information that shows the relationship between executive compensation actually paid, and the financial performance of the company. This portion of the Dodd-Frank Act has come to be known as the Pay Versus Performance disclosure requirements.