The national debate on executive compensation reform picked up steam this week, as the Treasury Department laid out its principles for compensation reform, unveiled its Interim Final Rule on the compensation and corporate governance standards that apply for TARP recipients, and appointed Kenneth Feinberg as Special Master for TARP Executive Compensation (aka the Pay Czar).
The Obama Administration also announced its plan for “say-on-pay” legislation that would give the SEC the authority to require non-binding annual say-on-pay votes for all public companies, and legislation that will direct the SEC to promulgate rules that will require compensation committee members to meet independence standards similar to those applied to audit committee members under Sarbanes-Oxley.
