Special Report: Dodd-Frank at 5 Years

15Jun_SR_DoddFrank_IntroArtAlmost nothing about the Dodd-Frank Act has been free of controversy, and once again critics aren’t hard to find as the Securities and Exchange Commission prepares regulations for implementing the law’s mandate for new executive-compensation disclosures.

The compensation provisions — requiring disclosure of the relationship between executive pay and performance and of the ratio between CEO pay and that of a company’s median employee compensation — are designed to offer enhanced transparency for investors in publicly held companies.

But to many corporate finance executives, they are nothing other than a big waste of time. Common complaints are that the information provided in the disclosures doesn’t really provide any useful intelligence, that the information is already available to investors who do a moderate amount of digging, and that the way the proposed regulation measures pay is unrealistic.

Source: CFO

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