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Chairwoman of the SEC Mary Schapiro testified before the Senate Committee on Banking, Housing and Urban Affairs yesterday, and the transcript is posted on the SEC’s website at http://sec.gov/news/testimony/2011/ts072111mls.htm.
The topic of the testimony was “Enhanced Oversight After the Financial Crisis: The Wall Street Reform Act at One Year.” You and I refer to The Wall Street Reform Act as Dodd-Frank.
Anyway, Dodd-Frank covers a lot of ground, as did MS’s testimony, but I’ll only mention here the parts about corporate governance. Among other things, the SEC has issued Dodd-Frank rules regarding say on pay and prohibition of brokers voting uninstructed shares. Rules the SEC is working on (she promises!) but are not yet ready are ”rules mandating new listing standards relating to specified ‘clawback’ policies, and new disclosure requirements about executive compensation and company performance, executive pay ratios, and employee and director hedging. “
I’m generally in favor of those rules, especially disclosure of executive pay ratios and hedging. These are facts that can easily be ascertained and reported, and I think many will find them useful.
But what about “new disclosure requirements about executive compensation and company performance”? Didn’t we just do that with Sarbanes-Oxley? And does anyone think that the narrative disclosures regarding executive compensation are better than they were before SOX? The main effect of the requirement of more disclosure has been more words and less meaning. I doubt the Dodd-Frank rules are going to do much better. I want to say to the Chairwoman, “Just the facts, ma’am.”
And another thing – don’t the guy Commissioners at the SEC ever testify? Sheesh. C’mon guys, don’t be chicken.
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Dave,
thanks for the link. Mary is well spoken and I have referenced her public statements in FINRA arbs from her days at FINRA. I assume she testifies because she is the best representative and the content seems to bear that out! SEC has a lot of work to do under this legislation.
Comment by Mike Willner July 23, 2011 @ 4:16 pmThanks Mike. I don’t know a lot about her history, but she seems quite capable. I think she’s been hampered by the SEC’s work becoming so politicized (as has everything else). Dave
Comment by davideromine July 23, 2011 @ 11:52 pm