After passing comprehensive tax reform but before breaking for the holidays, the House of Representatives passed legislation that would create new SEC-led registration and monitoring of proxy advisory firms on a bipartisan vote of 238-182, with twelve Democrats voting in favor of the bill, and five Republicans opposing it.
With pay ratio compliance coming soon for companies with annual meeting dates in the first half of the year, the Center On Executive Compensation has been receiving many questions about pay ratio communications, and especially, the content of the disclosure of the ratio itself.
This week, the Center On Executive Compensation and Equilar announced a new online tool developed by the Center for assessing the prevalence of executive incentive plan metrics and their correlation with long-term shareholder value.
According to Center Data, the average length of an S&P 500 CD&A has increased from 15.5 pages in 2012 to 17.7 pages in 2015.
In 2010, the Securities and Exchange Commission issued a Concept Release on the U.S. Proxy Plumbing System which included an discussion on the conflicts of interest inherent in the proxy advisory firm industry.