December 2016

Legislative & regulatory developments on executive compensation issues worldwide

US Update

House Republicans Urge SEC Not to Finalize “Midnight Rulemakings”
During the final testimony of SEC Chair Mary Jo White before the House Financial Services Committee on November 15, House Republicans urged her not to finalize “midnight rulemakings” – including on incentive compensation practices at financial firms – before she leaves office in January.
SIFMA Hearing Summary

Wall Street Bonus Rules Seen as Urgent Ahead of Trump Takeover
Financial regulatory agencies are reportedly rushing to finalize rules to strengthen executive compensation restrictions at financial firms before the end of the Obama Administration. 

Democratic Senators Call for Financial Regulators to Strengthen Executive Compensation Rules
On October 26, fifteen Democratic senators sent a letter to financial regulators urging them to strengthen restrictions on compensation of financial services industry executives. Notably, the lawmakers encouraged regulators to extend the deferral period for bonuses longer than four years and to make clawbacks and pay reductions mandatory rather than discretionary.

SEC Expanded Disclosure Review to Include Executive Compensation
As part of its Disclosure Effectiveness Review, the SEC requested public comments on the adequacy of disclosures on executive compensation in proxy statements. 
SEC Press Release
Center for Executive Compensation Alert


International Update

UK Government Publishes Green Paper on Corporate Governance and Remuneration
On November 29, the UK Department for Business, Energy & Industrial Strategy published a ‘green paper’ on corporate governance, which includes several policy recommendations on executive compensation. The paper proposes subjecting executive pay packages to binding shareholder votes, disclosing the pay ratio between chief executives and company employees, among other things. 
Green Paper

Bank of England Publishes Supervisory Expectations on CRD Remuneration Rules
In September 2016, the Bank of England and Prudential Regulation Authority published a consultation paper to clarify how firms should comply with the remuneration rules under CRD IV.  The consultation closed on November 28, 2016.   
Consultation Paper


Other Updates

Wall Street Bonuses are Set to Decline – Executive compensation in the financial services sector is set to decline 5 to 10 percent this year, according to industry analysts.  


SIFMA News & Events

Watch Video from The Capital Markets Conference
SIFMA's 2016 Annual Meeting, The Capital Markets Conference, convened leaders of the financial-services industry in our nation's capital for one-on-one conversations, in-depth discussions and expert insights on the state of our capital markets and how they can drive capital formation, job creation and economic growth. Watch video, read the blogs, download the research reports and see more highlights from the leading event for capital markets professionals.

Registration open: SIFMA's Signature Executive Education Program, SII at Wharton
The Securities Industry Institute® (SII) is the premier executive development program uniquely tailored for financial services professionals. For more than 65 years, SIFMA and The Wharton School of The University of Pennsylvania have partnered to equip SII participants with practical information, ideas and answers directly applicable to their present and future responsibilities. Registration is open for the March 5-10, 2017 program. Visit our website to learn more.

Long-Term Securities Issuance Up 19.4% Year-Over-Year: New Data from SIFMA Research
Total long-term securities issuance rose across all asset classes to $1.94 trillion in the third quarter of 2016, a 19.4% increase year-over-year. Year-to-date ending September, long-term issuance totaled $5.38 trillion, up from the $$5.26 trillion issuance in the first nine months of 2015. Issuance rose 1.1% quarter-over-quarter, including increases across all but municipal, treasury, corporate, and asset-backed debt classes.

SIFMA's Research Quarterly is a flagship report containing brief commentary and statistics on the U.S. capital markets, including but not limited to: municipal debt, U.S. Treasury and agency debt, short-term funding and money market debt, mortgage-related, asset-backed and CDO debt, corporate bonds, equity markets, derivatives, and the primary loan market.

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