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Investors Could Lose Influence Over Executive Pay

  • Votes credited with improving outreach to largest investors
  • Still-pending Dodd-Frank restrictions may soon be halted
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Threat of Dodd-Frank Repeal Puts Say-on-Pay Rules at Risk

Donald Trump, who was elected U.S president last week largely on support from working-class voters, could scrap rules designed to make pay in corporate America more egalitarian if the Republican follows through on a promise to dismantle the Dodd-Frank Act.

Crafted in the aftermath of the 2008 financial crisis, the law contains provisions that strengthen investors’ ability to restrain outsized pay packages for company chiefs. The bill requires clawback provisions, advisory votes on executive compensation and mandated disclosure of a CEO-to-worker pay ratio.