Staying in Front of Shareholder Litigation Challenges to Executive Compensation.
- Resource Type
- Article
- Authors
- Poerio, Mark; Sullivan, William F.; Reynolds, Timothy D.
- Source
- Corporate Governance Advisor. Jul/Aug2012, Vol. 20 Issue 4, p10-15. 6p.
- Subject
- *EXECUTIVE compensation
*STOCKHOLDERS
*TAX deductions
*ACTIONS & defenses (Law)
DODD-Frank Wall Street Reform & Consumer Protection Act
- Language
- ISSN
- 1067-6163
The article discusses the general obstructions to shareholder litigation to executive compensation. It states that Section 951 of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) has enacted the say-on-pay rule in which shareholders can vote on corporate executives' compensation. Moreover, the U.S. Internal Revenue Service (IRS) Code Section 162(m) limits the tax deduction taken by a publicly held corporation to annual compensation paid to executive officers.