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EXECUTIVE COMPENSATION

HR Management Activities

On average, salaries make up about 40— 60% of the typical top executive’s annual compensation total. A provision of a 1993 tax act prohibits a publicly traded company from deducting pay of more than $1 million for each of its top five officers unless that pay is based on performance criteria approved by outside directors and shareholders.

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Long Time Coming: SEC Adopts Final Dodd-Frank Clawback Rules

Proskauer's Employee Benefits & Executive Compensa

The Final Rules task national securities exchanges (“exchanges”) with adopting formal listing standards that, in turn, require publicly listed companies to establish compensation clawback policies that meet the standards prescribed in the Final Rules.