The mammoth Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Reform Act) that President Obama signed into law on July 21, 2010, makes wide-ranging changes in the regulation of the financial industry.
While the Reform Act is over 2,000 pages, and is primarily focused on financial institutions, slightly over 20 pages address corporate governance and executive compensation matters that will affect all companies that are publicly traded in the United States. As outlined below, these changes are significant. Additional guidance will need to be issued so that publicly traded companies will be able to comply with these new requirements.
This alert highlights, in succinct chart form, the major areas of reform in the areas of corporate governance and executive compensation. Where a specific effective date was provided in the Reform Act, it is noted. Several provisions do not contain a specified effective date and these requirements would appear to be effective as of the date of adoption of the Reform Act (July 21, 2010). Additional guidance on transition to compliance with these provisions will need to be issued.
Stay tuned for additional updates when further guidance becomes available.
For more information, or to discuss the application of the Reform Act to your situation, please contact one of the following attorneys or your usual Hodgson Russ contact.