Heading into the Fall, there is significant uncertainty on the regulatory front with regard to the outstanding Dodd-Frank executive compensation rules due to a polarized SEC which has two vacancies.
The Center On Executive Compensation submitted extensive comments to the six agencies charged with collectively implementing Dodd-Frank Section 956, which imposes significant restrictions on incentive plan designs for select financial services companies, making a strong case that a final rule should focus more narrowly on actual risk potential and warning of the dire recruitment and retention consequences which would result from the proposal.
Center On Executive Compensation CEO Tim Bartl testified this week before Congress in support of legislation requiring proxy advisory firms to register with the SEC and address conflicts of interest, stating that "where the Commission has provided effective oversight, it has had a substantial impact on proxy advisory firm diligence and conduct."
In 2015, 85% of S&P 500 companies received a "For" recommendation from ISS for their Say on Pay proposal for a second consecutive year.
Lobbying and Political Spending Disclosure Shareholder proposals remain the most popular ESG proposal among S&P 500 companies.