WASHINGTON--A divided Securities and Exchange Commission floated new rules to require publicly traded companies to make it easier for shareholders to determine whether top executives' compensation is aligned with the firm's financial performance.
The SEC voted 3-2 Wednesday to propose rules that would force about 6,000 publicly traded companies to tell investors how the pay of top management tracked the firm's financial results.
A requirement of the 2010 Dodd-Frank financial law, the proposal marks the latest attempt to strengthen investors' ability to understand--and challenge--companies over their executive-pay practices. The SEC has previously greenlighted so-called "say-on-pay" votes that require companies to put executive-compensation packages up to a nonbinding shareholder vote at least once every three years.
By Dow Jones Business News, April 29, 2015
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