Companies face a range of regulations and legislation from multiple jurisdictions on executive compensation disclosure, taxation, and prohibited practices. New federal regulations could require enhanced disclosure on pay versus performance, human capital metrics and workforce diversity, and climate risk.
Executive compensation is generally covered by contract law, an area covered by state law rather than federal law. Initiatives at the federal level — legislation and regulation from the Securities and Exchange Commission (SEC) — have focused on disclosure rather than mandating pay levels or incentive structures. Concurrently, the federal tax code may be used to encourage specific compensation behaviors.
Local jurisdictions have enacted a patchwork of rules regarding non-compete agreements and restrictive covenants, while local jurisdictions have implemented taxes based on CEO pay ratio.
Legislation is unlikely to harmonize across jurisdictions in the near future given the divergent political atmospheres in various states.
Featured Insights
Explore Executive Pay Legislation and Regulation Resources
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Dodd Frank Continues: Incentive Comp Rules May Drop Soon
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FTC Bans Non-Competes: What to Do Now
April 26, 2024 | News -
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EEOC Pay Data Dashboard Paves the Way for Unadjusted Pay Gaps
March 22, 2024 | News -
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President Biden Targets Executive Pay, 162m in State of the Union
March 22, 2024 | News -
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The 411 on Section 409A: Risk and Rewards of NQDC Plans
March 8, 2024 | News -
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How to Draft a Compelling Proxy: Center Webinar Highlights Tips and Tricks
March 8, 2024 | News
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Center Comments to SEC on Proxy Rules for Proxy Voting Advice
December 23, 2021 | Advocacy -
Center Comments to SEC: 2021 Re-Proposal Dodd-Frank Clawback Rule
November 17, 2021 | Advocacy -
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Quick Survey Results: Restrictive Covenants
February 14, 2020 | Survey -
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Quick Survey Results: Financial Adjustments
December 6, 2019 | Survey -
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Quick Survey Results: 10b5-1 Plans
April 16, 2019 | Survey -
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Quick Survey Results: Impact of Tax Reform
July 27, 2018 | Survey