New Treasury, SEC Proposals Would Affect Executive Compensation Practices
June 17, 2009
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The Obama administration asserts that executive compensation packages awarded in the years leading up to the global financial downturn of 2008, particularly the packages given to executives at financial institutions, rewarded those executives for taking excessive risks that endangered their companies and contributed to the market decline. As a result, the US Department of the Treasury and the US Securities and Exchange Commission now propose to change the ways in which publicly-held US companies establish executive compensation and disclose such pay packages.
What are the Treasury Department's new five "principles" to guide executive compensation practices, and how would the new proxy disclosure rules that the SEC is considering affect your company? Will the Treasury Department's stated goals for new Congressional legislation alter traditional executive compensation plans?
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