Dodd-Frank Update: Where Do We Stand?
Here is an important update on the status of the Dodd-Frank Act that we obtained from the National Association of Corporate Directors (NACD). This is an amazing organization whose primary mission is to "Advance Exemplary Board Leadership," and they do it well.
Dodd-Frank was put in place over three years ago, and there were several provisions that were intended to be passed in a short period of time. However, several provisions still have yet to be passed into law. Boards have been doing their best over the last several years working off of what has been finalized and what they anticipate on the issues still pending.
This excellent summary from NACD is broken down into key sections as follows (in order of appearance in the statute):
– Mandatory Risk – Pending
– Clawbacks/Financial Institutions – Final
– Whistleblowers – Final
– Say On Pay – Final
– Independence – Final
– Pay for Performance – Not Yet Issued
– Pay Ratios – Not Yet Issued
– Executive Pay Clawbacks – Not Yet Issued
– Hedging – Not Yet Issued
– No Broken Vote on Pay – Final
– Shareholder Access – Final
– Board Leadership Structure – Final
– Conflict Minerals – Final
We hope this is helpful as we turn the corner in 2013 and prepare accordingly for 2014. As always, feel free to contact us if you have any questions.