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Incentive Pay
Incentive Pay
Case 12.1. Executive Compensation: New Developments in Executive Compensation

Human resources leaders and compensation experts will always need to attract talented managers to their corporations. However, newer laws are in place to help rein in large executive salaries.

Sarbanes-Oxley (SOX) in 2002 has allowed the Securities and Exchange Commission (SEC) to “claw back” executive pay and stock awards retroactively. SOX has mandatory reporting requirements of all company perks, jets, country club memberships, and so on.1

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was signed into federal law by President Barack Obama on July 21, 2010. Commonly known as the Dodd-Frank, it ...

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