From Securities Regulation Daily, March 6, 2013

Shelby Offers Dodd-Frank Corrections Bill

By Jim Hamilton, J.D., LL.M.

Senator Richard Shelby (R-Ala), a key member of the Banking Committee, has introduced legislation to provide corrections to the Dodd-Frank Act. The Dodd-Frank Wall Street Reform and Consumer Protection Technical Corrections Act of 2013 would correct numerous drafting errors in the Dodd-Frank financial regulation law. According to Sen. Shelby, the legislation focuses purely on technical corrections of non-substantive inaccuracies and omissions in the statute.

The bill would, however, amend Section 953 of Dodd-Frank, which added Section 14(i) to the Exchange Act to require the SEC to adopt regulations requiring companies to disclose information showing the relationship between executive compensation actually paid and the financial performance of the company, taking into account any change in the value of the shares of stock and dividends of the issuer and any distributions. The corrections bill would add language to Section 953 allowing the SEC to exempt companies from the pay-for-performance disclosure requirements of new Section 14(i). In determining whether to make an exemption under this subsection, the Commission would need to take into account, among other considerations, whether the requirements would disproportionately burden small issuers.

The corrections bill would also extend for one year the deadline for the issuance of any regulation, the completion of any study, or the submission of any report required by the Dodd-Frank Act that has not been met or is not met in final form by the date specified in that Act. The one-year extension would have no effect on any rule required by the Dodd-Frank Act that has been issued in final form before the date of enactment of the corrections legislation.

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