The Securities and Exchange Commission (SEC) has proposed rulemaking that would enact a provision of the Dodd-Frank Act requiring mutual fund managers to disclose how they voted on proxy proposals, including on compensation agreements with company executives.
The so-called “say-on-pay” rule is one of 11 Dodd-Frank provisions that remain unfinished more than a decade after the bill was passed into law. Managers of mutual funds and exchange-traded funds representing institutional investors would have to reveal whether they voted in favor of a company’s salary and benefits packages for its executives, as well as bonuses, separation agreements, executive pay arrangements following mergers and acquisitions, and more.
