“Say on Pay” Shareholder Advisory Votes on Executive Compensation: The New Frontier of Corporate Governance Activism
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Consumer Protection Act (hereafter Dodd-Frank Act). 1 One provision of the Act mandates that, beginning with annual meeting on or after January 21, 2011, US publicly traded firms allow shareholders a nonbinding vote on executive pay, known as " say on pay " (hereafter SOP). 2 The purpose of this chapter is to present key insights from the academic research on the economic consequences of SOP. B...
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