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The Dodd-Frank act is a far-reaching law that impacts many U.S. companies. It became effective on July 21, 2010, and part of it covers “Accountability and Executive Compensation.”
A recommendation shaped by Kay would ignore signing bonuses, pensions and perks — including company airplane, car, driver, club memberships and home security systems — along with out-of-the-money stock options when making pay-for-performance assessments.
If you're stripping out pension valuations and other things, you're cooking the books.