 |
Sarbanes-Oxley News & Developments
Executive Stock Options Now Put To A Vote By ShareholdersThe SEC now requires companies to get shareholders approval for any stock option grants.
> > U.S.listed corporations must start submitting, stock-based pay plans to shareholders for a vote, including stock-option plans.
Executives previously could get millions of dollars in pay through stock-option plans without shareholder approval. The new rules, apply to companies listed on the NYSE and the Nasdaq, will help restrict the stock-option gravy train for corporate executives. However, there are a few loopholes that would exempt some plans from shareholders votes, including inducement awards or signing bonuses for new executive hires, some plans related to mergers and aquisitions, and some employee pension plans.
The SEC also approved a change in NYSE rules restricting brokers from voting shares in favor of stock-based pay plans without receiving instructions from the shares owner.
Source: CNN Money article
Published:2003-07-01
|
|
