- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2022-08-26T16:22:00
After years of sitting on the shelf, the pay vs. performance rule mandated by the Dodd-Frank Act was adopted by the Securities and Exchange Commission (SEC) on Thursday.
The SEC reopened comment on the rule in January, its first action related to pay vs. performance since an initial comment period in 2015. Gary Gensler, chair of the agency, has committed early in his tenure to seeing through the unimplemented portions of Dodd-Frank, passed in 2010 in response to the 2008 financial crisis.
The pay vs. performance rule requires public companies to disclose information reflecting the relationship between executive compensation actually paid and the firm’s financial performance. The information must be included in accordance with Item 402 of Regulation S-K for the registrant’s five most recently completed fiscal years (three years for smaller reporting companies).
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The Securities and Exchange Commission resurrected an unfulfilled mandate of the Dodd-Frank Act that would prevent the sale of certain securities if there is a conflict of interest.
The Securities and Exchange Commission passed a rule to require public companies to recover incentive-based compensation doled out to current and former executives up to three years before issuing an accounting restatement.
Final action by the Securities and Exchange Commission on its climate-related disclosure rule, whistleblower amendments, unimplemented elements of Dodd-Frank, and more could all take place by the end of the year, according to the agency’s spring agenda.
The U.S. Supreme Court extended the statute of limitations for businesses attempting to challenge some federal regulations, allowing regulated entities a longer timeline to appeal a decision.
The Supreme Court of the United States overturned a long-held precedent in which courts deferred to federal agencies in interpreting complex or ambiguous regulations–a decision that could make thousands of federal regulations more vulnerable to legal challenges.
Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
