Trump To Sign Executive Action on Dodd-Frank Today

President Trump plans to sign an executive action today to begin the process to scale back the Dodd-Frank Act.

The White House has stated that he will sign an executive order to direct the Treasury secretary and financial regulators to form a plan to revise many of the rules the Act put in place.

These amendments are likely to face opposition from Democrats and many investor groups, potentially setting the stage for increased governance activism over the coming years.

Among the items most likely to be repealed are pay ratio rules, hedging disclosure requirements, limit say on pay vote to material compensation changes, modify clawback rule requirements, SEC authority to adopt proxy access rules, and split chair/CEO disclosure rules.

With the focus on repealing Dodd-Frank, we can expect the SEC will cease further action regarding the adoption of a universal ballot in contested elections, board diversity mandates, and significantly  expanded disclosure requirements (especially regarding political spending and climate change).