Executive stock deals affected; sec. 16 changes
Article Abstract:
The SEC's new rules under section 16 of the Securities Exchange Act became effective on May 1, 1991. Section 16 requires executives and shareholders owning more than 10% of a corporation's common stock to report their beneficial ownership of and transactions in such stock to the SEC. Section 16's short-swing profit recovery stipulation complicates executive compensation since most companies use stock-based awards for this purpose. The new rules clarify the reporting requirements and add to the list of stock-based awards which can be classified as derivative securities, making executive compensation harder.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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SEC, Congress address executive pay
Article Abstract:
Controversy over excessive executive compensation has increased in the 1990s, and suggestions for congressional and regulatory steps to rein it in have begun. The Corporate Pay Responsibility Act suggests changes to standards determining whether executive pay is a proper subject for consideration by shareholders and thus subject to disclosure. The Income Disparities Act of 1991 would not permit business expense deductions for excessive executive pay. The SEC has also changed its position on stockholder input on executive compensation in favor of more disclosure.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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Rule changes proposed by the SEC would allow directors to delegate duties to foreign custodians and would offer a safe harbor for wrap-fee investment plans
Article Abstract:
Three proposals by the Securities and Exchange Commission in late July would give investment companies more flexibility and protection while setting new disclosure requirements. The first would amend Rule 17f-5 of the Investment Company Act of 1940 to let boards of directors delegate more responsibility for overseas investments. The second re-proposes Rule 3-4 under the Act, regarding wrap-fee programs and the like. The third concerns disclosure requirements for using fund brokerage to pay for fund expenses.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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