As many had predicted, the U.S. Securities and Exchange Commission will meet July 1 to consider proposed rules implementing the Dodd-Frank clawback requirement.
Although a positive first, the proposed implementation of the Dodd-Frank pay for performance disclosure is highly problematic by requiring the comparison of equity vesting over multiple years to one year total shareholder return.
During the 2013 proxy season, 466 S&P 500 companies reported say on pay results. 460 companies (98.71%) reported received majority support, averaging 91.84% support with a median of 95.49%.
The 2014 Proxy Season saw more than 80% of S&P 500 companies receive more than 90% shareholder say on pay support.