CLIENT ALERT: NYSE to Prohibit Broker Discretionary Voting on Executive Compensation Matters
Steve Wolosky, Kenneth M. Silverman, Michael R. Neidell and Ron S. Berenblat
On August 4, 2010, the NYSE announced that in order to comply with the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act, it intends to file an amendment to NYSE Rule 452 to prohibit its members, i.e., brokers, from voting on matters related to executive compensation, including “say-on-pay” proposals, without prior shareholder instruction at shareholder meetings held after July 21, 2010. While the amendment to NYSE Rule 452 has not yet been filed, the prohibition on broker discretionary voting on executive compensation is effective immediately.
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