Say-On-Frank Act Essay

Decent Essays

Unit 6 Discussion
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9. Discuss the three key provisions of the Dodd-Frank Act that apply to setting executive compensation.
According to Martocchio (2016), there are two groups of employees recognized by the Internal Revenue Service (IRS), namely, executive employees and non-executive employees. The unique element that distinguishes the executive compensation from non-executive packages is the emphasis on long-term rewards over short-term rewards. Although the Dodd-Frank Act focuses chiefly on overhauling the U.S. financial regulatory system, it contains several provisions that apply to setting executive compensation. The Say-On-Pay provision requires organizations to avail a resolution to shareholders that requires them to endorse, in a non-binding advisory vote, the remuneration of the entity’s named executive officers (Bainbridge, 2010). Then, to the extent that any “golden parachute”-related compensation is not approved as part of the Say-On-Pay vote, the Act …show more content…

Many employers hire temporary workers because of the benefits they bring to the firm. According to Martocchio (2016), temporary employees are a cost-effective way to replace permanent workers who are on approved leaves of absence, which facilitates business continuity. Moreover, they do not receive discretionary benefits such as medical coverage. Similarly, as the business needs change, employers face the flexibility to keep staffing levels optimal. Notably, temporary employees help minimize overall staffing expenses since their presence can keep regular workers productive and not overworked. Martocchio (2016) adds that employers hire temporary workers for experience and expertise lacking in the business. For example, entities employ IT specialists and creative people to fill short-term needs. Finally, according to Martocchio (2016), hiring contingent workers allows employers to assess performance of employees for potential

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