SEC Strengthens Exec Pay Disclosure Requirements

     WASHINGTON (CN) – The Securities and Exchange Commission has proposed changes that would add new disclosure requirements designed to enhance the information included in proxy and information statements, particularly information about executive and risk-management employee compensation.

     The SEC wants investors to be able to determine if a company’s overall compensation policy encourages unnecessary risks, and examine and the relationship between the company’s position on risk and director and nominee qualifications, company leadership structure, and the potential conflicts of interests of compensation consultants.
     Executives and other highly compensated individuals would be required to disclose the aggregate grant date fair value of bonuses or other compensation computed in accordance with Financial Accounting Standards Board Statement of Financial Accounting Standards instead of the dollar amount recognized for financial statement reporting purposes which often under estimates the value of the award.
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