New SEC Regulations on Pay and Perk Disclosures Go Into Effect
In mid-December of 2006, new Securities and Exchange Commission (SEC) rules became effective that require more information to investors by public companies in their filings about the pay packages and perks of executives. At a time of widespread backdating of options and the ever-widening divide between salaries of employees and executives, the changes are aimed at increasing corporate transparency.
The new requirements will be added to existing disclosure tables found in the SEC filings. The companies are required to adopt a "principles based" approach to current compensation disclosures that require the companies to explain and disclose all information that is material to compensations of executives, in plain terms and included all SEC filings with compensation requirements that began the week of December 15, 2006.
"CD&A is what gives meaning to the numbers found in the required tables While some executives are highly paid and some earn every penny, there are many executives that receive excessive compensation while investors lose millions," said Justin Kuepper, Senior Editor and SEC filings specialist at Accelerize New Media. "The new regulations will help curb these practices by forcing companies to discuss, in detail, how they come up with compensation amounts."
Included in the changes are new director disclosure requirements, more specific "related person" transaction reports, an increase in compensation committee exposure and changes to increase corporate transparency.
Brian Ross, Chief Executive Officer (CEO) said, "While recent regulations have helped increase corporate transparency, many investors still don't know where to find information," which is the goal at ExecutiveDisclosure.com, and to take SEC filing data and deliver it to the public in a "comprehensive" way.
The company, http://www.ExecutiveDisclosure.com, provides full SEC regulation coverage and in-depth compensation research tools with a free web service allowing the user to track compensation amounts with E-mail alerts and RSS feeds which compare performance with compensation, view industry compensation data and rate and review executives and view company SEC filings.