Institutional Shareholders and Their “Oversight” of Executive Compensation — The Harvard Law School Forum on Corporate Governance

Small business need-to-know and news-to-watch.  Compensation regulatory from a different perspective.

Excerpt:  Today’s post addresses the increasing influence of institutional shareholders on executive pay. Prior posts have examined the role of proxy advisors in giving advice on how shareholders, especially institutional shareholders, should vote on say-on-pay under Dodd-Frank Section 951. [1] Today’s discussion focuses on the institutional shareholders themselves.

While institutional shareholders own a major portion of the share value of U.S. public corporations, the “ultimate owners” are, to a large extent, millions of individuals for whose benefit the equity in these corporations is being held by the institutional shareholders. (These individuals will be referred to in the post as “ultimate owners.”)

Read full article via Institutional Shareholders and Their “Oversight” of Executive Compensation — The Harvard Law School Forum on Corporate Governance and Financial Regulation.

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