Wednesday, July 8, 2009

SEC Publishes "Say on Pay" Rule Proposal for TARP Recipients

The SEC has published the full text of its proposal to amend proxy rules to include an advisory shareholder vote on executive compensation for companies participating in the Troubled Asset Relief Program (TARP).  These proposals, along with two other "say on pay" rule proposals, were considered at the Commission's July 1, 2009 open meeting.

These rules, if adopted, would require annual shareholder advisory votes on executive compensation for TARP recipients as required by the Emergency Economic Stabilization Act of 2008 (EESA). These votes would be required in all proxy solicitations made while a company has TARP assistance outstanding, and are designed to make it easier for TARP recipients to comply with the EESA.

Comments on this proposal are due 60 days after the publication of the rule release in the Federal Register.  Comments on this rule proposal may be read at:

The full text of the rule proposal is available at:

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