When Congress and the Obama administration reached consensus on the Dodd-Frank Wall Street Reform and Consumer Protection Act last month, they agreed on a measure that goes far beyond reforming the way Wall Street does business. The new law will have implications for HR professionals on issues such as whistleblower protections, diversity in the workplace, and executive compensation.
The Wall Street Reform Act, as it has been labeled by the media, includes these provisions:
- Whistleblower Protections - Strengthens the protection provisions contained in the Sarbanes-Oxley Act.
- Diversity in the Workplace - Provides for the creation of a new diversity "czar" for each of the major federal financial regulatory agencies, and directs each agency to create an Office of Minority and Women Inclusion. That office is authorized to take action if it concludes that an employer is not making a good-faith effort to comply with the diversity provisions of the new law.
- Executive Compensation and Corporate Governance - This addresses issues such as recovery of erroneously awarded compensation, executive compensation disclosures, and other matters related to operational transparency.
To review a summary of the key provisions of the new law distributed by the Senate Banking Committee, click HERE.