Amidst holiday cheers and winter chills, lawyers and some former staff members of the Securities and Exchange Commission and the Justice Department confirm that 2012 will be yet another busy year in regulation. For compliance professionals who want to update their checklists, here are the experts’ thoughts on what to expect from both agencies next […]
Reese Darragh
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Fed Envisions Stronger Risk Control at Large Financial Firms
The Federal Reserve is opening 2012 with new moves for better governance of large businesses critical to the broader financial system—banks and non-banks alike. The Fed proposed new rules Dec. 20 addressing stress tests, capital requirements, board oversight, and numerous other issues spelled out in the Dodd-Frank Act. They would apply to all U.S. bank […]
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ISS Explains New Pay Review Plans
Anyone looking for yet another headache likely to arise this proxy season, look no further: Institutional Shareholder Services has unveiled a new analytical model it will use to evaluate executive compensation. In a white paper it published Dec. 19, ISS says it will now take a two-pronged approach to reviewing compensation packages. First will be […]
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2010 Pay Survey: Real CEO Pay at Big Firms Rose 36 Percent
Total realized compensation of chief executive officers in the S&P 500 rose by 36.5 percent last year, while total realized compensation for all CEOs—including those from companies outside of the S&P 500 group—rose by 27 percent, according to a survey conducted by governance and ESG ratings and research firm GMI. “The 36.5 percent increase in […]
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Frequency of Board Meetings Declining Among S&P 1500, Study Says
In the past decade amidst accounting scandals and changes in the listing exchanges’ requirements, researchers have observed significant increases year-on-year in the frequency of board meetings held by S&P 1500 companies. Last year, however, researchers say the pattern seems to have disappeared. The average number of meetings held last year fell to 7.8 from 8.3 […]
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Conducting Investigations in Executive Compensation
In response to pressure from investors, proxy advisory firms, and the public to curb excessive executive pay practices, many companies added new pay policies and rules. Now they have the added task of ensuring that everyone abides by them. That means more focus on internal investigations related to pay, when claims arise that executives may […]
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New Compliance Verification Requirement for Defense Contractors
Government contractors will now have to comply with one more requirement if they want to do business with the Defense Department: a statement that they are in full compliance with the Pentagon’s restrictions on hiring ex-government officials. The change is nothing terribly new, but could expose more contractors enforcement of the False Claims Act, one […]
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Study Shows Trend: More Women in S&P 1500 Boards
International focus on electing female directors may have had some impact among U.S. firms. On average female representation increased to 13.2 percent last year compared to 12.2 percent in 2008, said executive compensation data research firm, Equilar. Based on the study among 1,185 companies in the S&P 1500, 77 percent of these companies have at […]
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SEC Reveals Plan to Regulate Proxy Advisory Firms
Good news for companies that questioned the influence of proxy advisory firms. The Securities and Exchange Commission is considering guidance on how the federal securities laws should regulate the activities of proxy advisory firms, said Chairman Mary Schapiro in her remarks at the Transatlantic Corporate Governance Dialogue on Dec. 15. She said the consideration was […]
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U.S. Senators Call for Creation of Special-Class Securities Issuers to Spur Job Creation
A group of bi-partisan U.S. Senators announced a plan to aid small- and medium-sized firms to access capital through public markets to help them expand in order to create more jobs in the market. The plan is sponsored by Senators Charles Schumer (D-N.Y.), Pat Toomey (R-Pa.), Mark Warner (D-Va.), and Mike Crapo (R-Idaho). The bill, […]