Under the Dodd-Frank Act signed into law in 2010, proxy solicitations asking shareholders to approve an acquisition, merger, or consolidation in publicly held companies must provide shareholders with a binding vote to approve any compensation relating to these combinations.

Question

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The Dodd-Frank Act requires that shareholders are given a "say on pay" vote, which is advisory and not binding, regarding executive compensation in the context of mergers, acquisitions, or consolidations. This means shareholders can express their approval or disapproval of executive compensation packages, but their vote does not have the legal power to enforce changes.

Under the Dodd-Frank Act Signed into Law in 2010, Proxy