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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SEC Incentive Comp Redux
September 20, 2024 | News -
Proxy Advisors Signal Shift on CEO Pay
September 20, 2024 | News -
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Center Pokes Holes (Again) in Misguided SEC Incentive Comp Proposal
September 13, 2024 | News -
Fall Outlook: Biden’s Final Moves — Global Workplace Trends — Lame Duck Session
September 5, 2024 | News -
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Member Only
Large Companies Exceed SEC Requirements on Clawbacks
July 19, 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