Threat of Dodd-Frank Repeal Puts Say-on-Pay Rules at Risk

The video discusses the Dodd-Frank Act, focusing on its provisions aimed at regulating CEO pay and enhancing investor influence in boardrooms. It explores the potential consequences of repealing these measures, particularly for working-class voters who supported Trump. Despite the regulations, CEO pay has continued to rise, but investors have gained more tools to influence executive compensation. The video also examines the role of non-binding votes as a means for investors to express disapproval of board decisions, highlighting their significance despite their non-binding nature.

What is one of the main purposes of the Dodd-Frank Act as discussed in the video?

• To curb oversized executive compensation

• To eliminate all financial regulations

• To encourage economic growth

• To increase CEO pay

How have the Dodd-Frank provisions affected executive compensation practices?

• They have increased the use of cash-based payments

• They have encouraged more performance-based pay

• They have had no impact on executive compensation

• They have led to a decrease in CEO pay

What is the role of investors in the context of Dodd-Frank provisions?

• Investors have no influence on executive compensation

• Investors can directly set CEO pay

• Investors have more tools to influence boardroom decisions

• Investors are required to approve all executive pay packages

What is the purpose of the 'say on pay' votes?

• To eliminate CEO bonuses

• To serve as a shaming tool for boards

• To legally bind companies to investor decisions

• To increase the frequency of board meetings

Why do directors care about the results of non-binding votes?

• They have no impact on the company's reputation

• They are seen as bad PR if results are low

• They can lead to legal consequences

• They directly affect stock prices