Four states, Utah, West Virginia, Texas and Louisiana, have sued the SEC about the new rule that requires certain investment funds to reveal more about how they vote on shareholder ballots, including on pay packages for top executives.
The new rule will put shareholders at increased risk of loss, encouraging political activism and raising administrative costs, according to the office of Utah’s attorney general, as reported by Reuters.
In addition to disclosures on voting on executive pay, the rule the commission adopted in November requires mutual funds, exchange-traded funds and others to produce more comprehensive and machine-readable information.
The new rules require companies to disclose any agreements or understandings that the target company has with its own named executive officers or those of the company that is acquiring the target company (called the acquiring company), as well as any relationships between the acquiring company and its named executive officers and those of the target company. Such disclosures must include the total of all compensation that may be paid or become payable to, or on behalf of, the named executive officer, and the conditions upon which it may be paid or become payable, per the SEC.
The Say-on-Pay, frequency, and golden parachute votes are advisory rather than binding. The DoddFrank Act specifies that the shareholder vote to approve executive compensation “shall not be binding on the issuer or the board of directors of an issuer," per the SEC.
Four states, Utah, West Virginia, Texas and Louisiana, have sued the SEC
2/24/2023
The Pentagon has officially accepted a $400 million luxury airliner from Qatar that Trump said will serve as Air Force One
5/21/2025 7:01 PMKlarna CEO has said that AI helped company shrink workforce by 40%
5/21/2025 6:04 PMSerious Credit Card delinquencies has risen to 12.31%
5/21/2025 6:01 PMSoftware engineer lost his $150K-a-year job to AI—he’s been rejected from 800 jobs and forced to DoorDash and live in a trailer to make ends meet
5/21/2025 5:58 PM
Stay Updated
Subscribe to our newsletter for the latest financial insights and news.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.