Dodd-Frank Act

HR Policy Association in conjunction with the Center On Executive Compensation has advocated strongly for a responsible and board-centric implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  As the Securities and Exchange Commission continues to engage in rulemaking for the various requirements in Dodd-Frank, the Center will continue to advocate for a principled approach the new mandates.

The Dodd-Frank Act includes executive compensation and corporate governance provisions of unprecedented scope and vagueness.  Many companies have already spent significant resources implementing the required changes and expect to spend even more in the future.  With regards to executive compensation and corporate governance, Dodd-Frank mandated changes concerning:

The Dodd-Frank Act also provides important insight into how Congress will treat executive compensation issues going forward.  The Center believes these new rules, if implemented hastily or incorrectly, run the risk of creating a “one-size-fits-all” approach to compensation and corporate governance, thereby shifting the focus onto short-term growth to allow companies to satisfy the various regulatory hurdles contained in Dodd-Frank without penalty.