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SEC Wants More Disclosure on Executive Pay
By JLP | January 18, 2006
This is great news! According to this Chicago Tribune story, The Securities and Exchange Commission voted unanimously to propose the biggest changes in rules governing disclosure of executives’ compensation since 1992. Here’s what they want to do:
“Publicly traded companies for the first time would be required to furnish tables in annual filings showing the total yearly compensation for their chief executive officers, chief financial officers and the next three highest-paid executives. The true costs to the bottom line of the executives’ pay packages, including stock options, would have to be spelled out.”
Also, executive perks must be detailed if they are over $10,000 instead of the old $50,000 requirement and disclosure tables detailing executive retirement packages must be provided .
I think these changes are reasonable. Now I wish companies would end the huge packages that executives get when they are fired.
Now I would like to know what you think. Do you think these changes will be good?
Topics: Miscellaneous | 2 Comments »
January 18th, 2006 at 9:11 am
JLP – would this disclosure requirement include outlining the retirement packages? I’m all for the changes proposed, as I think more transparancy will incite some much-needed downward pressure on some of the outrageous pay packages of executives.
January 18th, 2006 at 8:35 pm
I think this is a great thing. I wish they would also show the retirement packages as well.