Senate Conferees Agree on Shareholder Advisory Vote on Golden Parachutes

Senate conferees, on June 22, 2010, acceded to the House and agreed to require a shareholder advisory vote on golden parachutes. The bill the House passed had included golden parachutes in the say on pay provision, but the Senate-passed bill did not. Both House and Senate bills add a new section to the Exchange Act proxy provisions mandating a separate shareholder advisory vote to approve the compensation of the executives as disclosed pursuant to the SEC executive compensation disclosure rules for named executive officers. The shareholder vote is not binding on either the company or its board of directors.