US firms prepare for new say-on-pay rules for executives

US FIRMS have already begun to make provisions for tough new rules giving shareholders more say in how much top staff are paid.

A study by ClearBridge shows a significant number of the biggest US firms have already moved to cut the basic pay and benefits packages of their top staff.

Firms including General Electric and AT&T are among those understood to have changed their pay and tax structures to meet the demands of the so-called “say-on-pay” legislation.

The new rules, which were brought in as part of the Dodd-Frank financial reforms, also demand greater transparency over remuneration for top executives.

Some firms have also begun to link the pay of their chief executives more closely with returns for investors.