• SEC Proposes Incentive-Based Compensation Rule
  • March 11, 2011 | Authors: Amy L. Blackman; Donald P. Carleen; Jessica Forbes; Jeffrey Ross
  • Law Firm: Fried, Frank, Harris, Shriver & Jacobson LLP - New York Office
  • On March 2 the Securities and Exchange Commission (the “SEC”) announced a proposed rule (the “Proposed Rule”) that would require “covered financial institutions,” including certain investment advisers and broker-dealers, to disclose the structure of their incentive-based compensation practices to the SEC and prohibit these entities from maintaining compensation arrangements that encourage inappropriate risks.