Executive compensation, and in particular excessive executive compensation, has been a major topic of conversation in recent years both on Wall Street and Main Street. The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2011 in response to the economic recession and general public mistrust of Wall Street, has once again brought the topic of executive compensation front and center. With this background in mind, we have addressed two topics in this article that remain the focus of the Securities and Exchange Commission rule-making: “golden parachutes” and CEO-to-employee pay-ratio disclosures.
Golden-Parachute Payments
Golden parachutes are compensation arrangements with executives relating to any type of compensation payable in connection with a change in control transaction, such as an acquisition, merger, disposition or similar transaction. The principle behind golden parachutes is to protect an executive who engages in a transaction that may be in the best interest of shareholders but which may result in the executive losing his or her job.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
