Uncertainty Surrounds SEC Proposals, Lawyer Says

David Slotkin, a partner at Morrison & Foerster LLP, joined REIT.com for a video interview at REITWise 2017: NAREIT’s Law, Accounting & Finance Conference in La Quinta, California.

Slotkin participated in a REITWise panel discussion on Securities and Exchange Commission (SEC) legal issues.

Slotkin said an SEC proposal on universal ballots is likely to “go by the wayside for the next four years, at least.”

Meanwhile, uncertainty surrounds SEC proposals on CEO pay ratios, according to Slotkin.

“The first concern is whether it will get abolished under the new administration,” Slotkin said.

In case the pay ratio law does remain intact, companies are working to ensure they capture the right compensation data, Slotkin said.

REITs, many of which might have temporary, part-time or seasonal workers, are contemplating providing alternate ratios in addition to the required ratio, Slotkin noted. He added that REITs with international operations face additional questions surrounding how international employees factor into the pay ratio calculations.

Turning to SEC clawback proposals, Slotkin said he is advising clients not to make changes if they already have a clawback policy in place. “It’s considered fairly likely that the proposed clawback rule will be done away with,” he said.