For over 70 years, the Securities and Exchange Commission has required U.S. publicly traded companies to disclose information about the company’s executive compensation practices. The format and depth of the executive compensation disclosure requirements has changed several times since both the Securities Act and the Exchange Act were enacted in the 1930s. The most recent requirements were implemented in 2007 and each of the following elements are significant parts of the current disclosure regimen.
- Pay for Performance
- 2010 Dodd-Frank Act
- Alternative Pay Disclosures
- Board Compensation Consultant Independence
- Compensation Committee Independence
- Financial Services Industry Compensation Rules
- Pay Ratio
- Proxy, CD&A, and Exec Comp Tables
- Say on Golden Parachutes
- Say on Pay
- The Federal Disclosure Regime
The Center believes executive compensation disclosures provide material information about corporate executive compensation practices and should be written in an efficient, concise manner which effectively communicates a company’s pay program to interested shareholders.