In rules effective in 2006, the SEC put in place a principles-based regime for disclosure of executive compensation and related-party transactions. Enhancements and revisions in the intervening decade have modified the disclosure requirements in some crucial respects such as:
- Elimination of separate regulations and forms pertaining to small business issuers.
- Revisions to the method of accounting for stock and option awards.
The Dodd-Frank Act also made its mark on executive compensation disclosure as it directed the SEC to craft rules requiring:
- Advisory votes on executive compensation.
- A disclosure and voting regime for golden parachute arrangements.
- Disclosure as to whether hedging arrangements are allowed and how compensation policies for all employees affect risk.
- Disclosure of the ratio between the CEO’s pay and that of the median employee.
Executive Compensation: A Decade of Disclosure discusses these new requirements in the context of the broader disclosure framework. It also includes a discussion of recent developments in corporate governance, notably the upsurge in proxy advisory services, which are becoming the de facto standard setters for corporate governance matters including executive compensation.
|Product Line||Wolters Kluwer Legal & Regulatory U.S.|
- Compensation Discussion and Analysis
- Executive Compensation Disclosure
- Options Disclosure
- Related-Party Transactions
- Corporate Governance
- Beneficial Ownership Disclosure
- Dodd-Frank Act