"Say-on-pay" provision

{
  "id": "MLC-T-INS-003019",
  "term": "\"Say-on-pay\" provision",
  "field": "Insurance and risk management",
  "definition": "A corporate governance requirement, mandated by the Dodd-Frank Act in the United States, that gives shareholders a non-binding advisory vote on executive compensation packages. This provision aims to increase transparency and accountability in executive pay decisions. While the vote is not legally binding on the board, a negative outcome can signal shareholder dissatisfaction and pressure for changes in compensation practices.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/say-on-pay-provision/"
}