Securities Law Updates | New Statutes, Regulations and Rules
February 4, 2010
SEC Issues Amendments to Proxy Rules to Include Shareholder Proxy Vote on Executive Pay of TARP Recipients
Shareholder Approval of Executive Compensation of TARP Recipients
Release No. 34–61335; File No. S7–12–09, 1/12/2010
The Securities and Exchange Commission (“SEC”, or “Commission”) has adopted amendments to the proxy rules under the Securities Exchange Act of 1934 to set forth certain requirements for U.S. registrants subject to Section 111(e) of the Emergency Economic Stabilization Act of 2008.
Section 111(e) of the Emergency Economic Stabilization Act of 2008 requires companies that have received financial assistance under the Troubled Asset Relief Program (‘‘TARP’’) to permit a separate shareholder advisory vote to approve the compensation of executives, as disclosed pursuant to the compensation disclosure rules of the Commission, during the period in which any obligation arising from financial assistance…
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