Securities and Exchange Commission: Shareholder Approval of Executive Compensation and Golden Parachute Compensation
GAO-11-362R, Feb 16, 2011
GAO reviewed the Securities and Exchange Commission's (Commission) new rule on shareholder approval of executive compensation and golden parachute compensation. GAO found that (1) the final rule implements section 951 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Section 951 requires companies to conduct a separate shareholder advisory vote to approve the compensation of executives; and (2) the Commission complied with the applicable requirements in promulgating the rule.