Corporate Governance

Senate Bill Passes with Broad Corporate Governance and Compensation Provisions

By Harvard Law School Program on Corporate Governance

Last night the Senate passed the Restoring American Financial Stability Act of 2010 . As discussed in a prior memorandum, the Senate Bill would federalize significant governance and executive compensation matters that have historically been a matter of state law. The bill would affect all US public companies and would especially be felt by midcap and smaller companies that have until now generally not been the target of governance activists.

We expect that next month Congress will begin reconciling the Senate Bill with the Wall Street Reform and Consumer Protection Act of 2009, which passed the House on December 11, 2009. We expect that the law that emerges will closely follow the Senate Bill.

This brief memorandum highlights the key corporate governance and disclosure provisions of the Senate Bill. We will shortly publish a detailed memorandum that will address the heart of the Senate Bill: the overhaul of financial institution regulation.

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Full post as published by The Harvard Law School Corporate Governance Blog on May 21, 2010 (boomark / email).