PART I - EXECUTIVE COMPENSATION
Chapter 1. AN OVERVIEW OF THE EXECUTIVE COMPENSATION AND DISCLOSURE RULES by Steven J. Sabow and Mark A. Borges
- § 1.01 Introduction
- § 1.02 Current Rules
- § 1.03 Impact on Compensation Committee Process
- § 1.04 Impact on Executive Compensation Programs
- § 1.05 Directors’ Compensation
- § 1.06 Evolving Compensation Landscape
Chapter 2. PREPARING THE EXECUTIVE COMPENSATION TABLES by W. Alan Kailer
- § 2.01 Introduction
- § 2.02 Applicability of the Rules
- § 2.03 Specific Requirements
- § 2.04 The Exhibits
- Exhibit 1 Required Disclosure by Type of Compensation or Plan
- Exhibit 2 Annotated Tabular Disclosure
- Exhibit 3 Key Definitions
Chapter 3. COMPENSATION DISCUSSION AND ANALYSIS by Robert M. Hayward, Theodore A. Peto
- § 3.01 Introduction
- § 3.02 Gathering the Facts
- § 3.03 Preparing a Draft Compensation Discussion and Analysis
- § 3.04 SEC Staff Guidance
- § 3.05 Recent SEC Disclosure Requirements Regarding Compensation Consultants and Risk Management and Executive Compensation
- § 3.06 Impact of the Dodd-Frank Act
- § 3.05 Why You Should Care
Chapter 4. SAY-ON PAY REQUIREMENTS AND CONSIDERATIONS by Sean C. Feller and Dina R. Bernstein
- § 4.01 Say-on-Pay
- § 4.02 Say-on-Frequency
- § 4.03 Say-on-Golden Parachutes
Chapter 5. EXECUTIVE COMPENSATION DISCLOSURE UNDER INTERNAL REVENUE CODE SECTION 162(m) by Edward E. Bintz
- § 5.01 Introduction
- § 5.02 Section 162(m)
- § 5.03 Performance-Based Compensation
- § 5.04 Grandfather Rule for Written Binding Contracts
- § 5.05 Other Exceptions to the $1 Million Limit
- § 5.06 How Publicly Held Companies Manage Section 162(m)
- § 5.07 Special Rules Applicable to Participants in Troubled Assets Relief Program (TARP) and Health Insurance Providers
- Exhibit 1 Section 162(m) of the Internal Revenue Code
Chapter 6. RULES APPLICABLE TO NONQUALIFIED DEFERRED COMPENSATION by Michael J. Collins
- § 6.01 Background
- § 6.02 What Is Deferred Compensation?
- § 6.03 What Rules Apply to Deferred Compensation Under Section 409A?
- § 6.04 Special Rules for Equity Compensation
- § 6.05 Consequences of Violating Code Section 409A
- § 6.06 IRS Correction Programs
Chapter 7. SPECIAL CONSIDERATIONS IN ADOPTING AND AMENDING EMPLOYEE STOCK PLANS by Keith F. Higgins
- § 7.01 Introduction
- § 7.02 Amending and Adopting Plans
- § 7.03 Additional Disclosure Concerning Equity Compensation
- § 7.04 Listing Requirements
- § 7.05 Institutional Shareholders
- § 7.06 Conclusion
Chapter 8. ACCOUNTING FOR STOCK-BASED COMPENSATION by Benjamin S. Neuhausen, Michael S. Kesner, and Roberta Dahl
- § 8.01 Introduction
- § 8.02 SummaryofFASB Statement No. 123(R) (Codified as ASC 718)
- Exhibit 1 Illustration of Accounting for Stock-Based Compensation
PART II - PROXY RULES
Chapter 9. AN OVERVIEW OF THE PROXY SOLICITATION RULES by Laurie L. Green and Aaron N. Goldberg
- § 9.01 Introduction
- § 9.02 Overview of the Proxy Solicitation Process
- § 9.03 Shareholder Access
- § 9.04 E-Proxy
- § 9.05 Shareholder Lists § 9.06 Bona Fide Nominee Rule and Short Slates
- § 9.07 Unbundling of Related Proposals
- § 9.08 SLB No. 14: Rule 14a-8 Interpretations
- § 9.09Exempt Solicitations and Shareholder Communications
- § 9.10 Shareholder Activism
Chapter 10. THE SHAREHOLDER COMMUNICATIONS PROXY RULES AND THEIR PRACTICAL EFFECT ON SHAREHOLDER ACTIVISM AND PROXY CONTESTS by Steven A. Rosenblum
- § 10.01 Introduction
- § 10.02 The Shareholder Communications Proxy Rules and Subsequent Reforms and Proposals
- § 10.03 Proxy Contests and Shareholder Activism
- § 10.04 Recommendations
- § 10.05 Conclusion
- Exhibit 1 Model Bylaws for Advance Notice of Stockholder Business and Nominations
Chapter 11 “STREET NAME” REGISTRATION & THE PROXY SOLICITATION PROCESS by John C. Wilcox, John J. Purcell, Hye-Won Choi, and Niels Holch
- § 11.01 Introduction
- § 11.02 “Legal” vs. “Beneficial” Ownership of Stock
- § 11.03 Assertion of “Legal” Rights by “Beneficial” Owners
- § 11.04 Tabulation Issues
- § 11.05 Post–Record Date Sales and Share Lending
- § 11.06 Conclusion
- Exhibit 1 Custodial Ownership Chart
- Exhibit 2 Sample DTC Participant Request for Stocklist Demand Letter—Delaware Corporation
- Exhibit 3 Sample DTC Stocklist Demand Letter—Delaware Corporation
- Exhibit 4 TIAA-CREF Securities Lending Policy
Chapter 12. THE SHAREHOLDER PROPOSAL PROCESS by Keir D. Gumbs and Elizabeth A. Ising
- § 12.01 Introduction
- § 12.02 History of the Shareholder Proposal Rule
- § 12.03 Procedural Elements of the Shareholder Proposal Process
- § 12.04 Binding Bylaw Amendments
- § 12.05 Proposals Contrary to the Proxy Rules and Regulations
- § 12.06 The Ordinary Business Exclusion
- § 12.07 Proposals Relating to the Election of Directors
- § 12.08 Substantial Implementation
- § 12.09 Other Bases for Exclusion
- § 12.10 Advance Notice Bylaws, Proposals from the Floor, and Discretionary Voting Authority
- Exhibit 1 Staff Legal Bulletin No. 14 (July 13, 2001)
- Exhibit 2 Staff Legal Bulletin No. 14A (July 12, 2002)
- Exhibit 3 Staff Legal Bulletin No. 14B (September 15, 2004)
- Exhibit 4 Staff Legal Bulletin No. 14C (June 28, 2005)
- Exhibit 5 Staff Legal Bulletin No. 14D (November 7, 2008)
- Exhibit 6 Staff Legal Bulletin No. 14E (October 27, 2009)
Chapter 13. E-PROXY, ELECTRONIC COMMUNICATIONS,AND VOTING by Keir D. Gumbs and Andrew Brady
- § 13.01 Introduction
- § 13.02 Electronic Delivery of Proxy Materials Under Rule 14a-16
- § 13.03 Electronic Delivery Outside of Rule 14a-16
- § 13.04 Electronic Voting
- § 13.05 Electronic Stockholders’ Meetings
Chapter 14. AUDIT COMMITTEE DISCLOSURE AND RELATED REQUIREMENTS by Lisa A. Fontenot and Gillian McPhee
- § 14.01 Introduction
- § 14.02 Audit Committee Report
- § 14.03 Other Audit Committee Disclosures
- § 14.04 Disclosures Relating tothe Outside Auditor
- § 14.05 Audit Committee Charter Disclosure Requirements
- § 14.06 Audit Committee Samples: Pre-Approval Policies, Questionnaires, Charters, and Checklist
Chapter 15. DIRECTOR QUALIFICATIONS; BOARD LEADERSHIP; DIVERSITY AND RISK OVERSIGHT by Lori Zyskowski
- § 15.01 Introduction
- § 15.02 Selected Proxy Statement Disclosure Examples
- § 15.03 Conclusions and Recommended Practices
Chapter 16. DIRECTOR INDEPENDENCE REQUIREMENTS by Anne G. Plimpton
- § 16.01 Introduction
- § 16.02 Director Independence and Related Requirements
- § 16.03 IPO Phase-In
- § 16.04 Exceptions
- § 16.05 Ability to Cure
- § 16.06 Working With the Various Definitions
- Exhibit 1 Trading Markets, Securities, and Tax Standards (as of July 15, 2011)
- Exhibit 2 Other Independence Standards (as of July 15, 2011)
Chapter 17. DISCLOSURE OF RELATED PERSON TRANSACTIONS by Anne G. Plimpton
- § 17.01 Introduction
- § 17.02 Key Definitions and Parameters
- § 17.03 Exclusions and Exceptions
- § 17.04 Policies and Procedures for Review, Approval, or Ratification of Transactions
- § 17.05 Independence Determinations
- § 17.06 Action Items
APPENDICES
- Appendix A: SEC Executive Compensation and Corporate Governance Disclosure Rules—Regulation S-K Items 401 through 407
- Appendix B: Text of Selected SEC Proxy Rules
- Appendix C: SEC Rule 14a-16 Internet Availability of Proxy Materials
- Appendix D: Selected Executive Compensation, Corporate Governance and Other Disclosure Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Excerpts)
- Appendix E: Department of Labor Interpretative Bulletins relating to the Employee Retirement Income Security Act of 1974 (July 21, 1994)
- Appendix F: SEC Release No. 34-40018 (May 21, 1998) Final Rule: Amendments to Rules on Shareholder Proposals
- Appendix G: Internal Revenue Service Regulations Under Section 162(m) and IRS Revenue Ruling 2007—I.R.B. 2007-25 regarding Covered Employees Under Section 162(m)(3)
- Appendix H: The Sarbanes-Oxley Act of 2002 (Excerpts)
- Appendix I: SEC Release No. 33-8183 (January 28, 2003) Final Rule: Strengthening the Commission’s Requirements Regarding Auditor Independence (Excerpt)
- Appendix J: Selected Requirements for Disclosure of Equity Compensation Plan Information
- Appendix K: NYSE Corporate Governance ListingStandards— Section 303A of NYSE Listed Company Manual
- Appendix L: NYSE Rule 452—Giving Proxies by Member Organization
- Appendix M: The Nasdaq Stock Market Corporate Governance Rules and Associated Interpretative Material
- Appendix N: ARRA (TARP) Executive Compensation and Say on Pay Requirements Index
