SEC proposes 'say-on-pay' rules

AP News
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Posted: Oct 18, 2010 5:31 PM
SEC proposes 'say-on-pay' rules

Federal regulators have proposed rules giving shareholders at all public companies a nonbinding vote on executive compensation packages.

The Securities and Exchange Commission on Monday opened to public comment the so-called "say-on-pay" proposals. They also would give shareholders an advisory vote on the "golden parachute" deals that executives get when their companies are acquired by others in mergers.

The SEC could formally adopt the new rules sometime after the 30-day comment period. They were mandated under the financial overhaul law enacted last summer. Investor advocates, union pension funds and shareholder groups have pushed for such a change.

A public outcry over lavish executive compensation was raised during the financial crisis.