HR Policy Association – Executive Compensation Disclosures – News Story

Noting that investors have “continued to indicate a general dissatisfaction with the clarity and readability of executive compensation disclosure,” Keith Higgins, Director of the SEC’s Division of Corporation Finance, announced this week that the Commission is expanding its comprehensive review of corporate disclosures to include an examination of the descriptions of executive compensation in the proxy and the accompanying tables.  In remarks to the American Bar Association’s National Institute on Executive Compensation, Mr. Higgins said the staff of the Division of Corporation Finance is “hard at work” on the Disclosure Effectiveness Project, which will re-examine how companies convey information in the disclosure regime.  The Project was started by the SEC two years ago and initially focused on a review of business and financial reporting of annual and quarterly reports.  However, Mr. Higgins stated that the next priority would be executive compensation and governance information.  Specifically, Mr. Higgins noted the staff would examine:

The Compensation Discussion

via HR Policy Association – Executive Compensation Disclosures – News Story.

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