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Clearing Up Executive Compensation

The U.S. Securities and Exchange Commission (SEC) published its proposal to revamp the rules governing the disclosure of executive and director compensation on Jan. 27, 2006. The proposed rules stand to significantly alter the compensation disclosure requirements applicable to registration statements, proxy statements, annual reports and Form 8-Ks, and are intended to ensure that investors receive disclosure that is 'clearer and more complete.' The regulations are the first attempt at a major overhaul of compensation disclosure since 1992 and were proposed in response to the widespread criticism that the current disclosure requirements do not engender a complete and accurate description of executive pay packages. <br>The proposal, to adapt the old saying, combines something old, something new and something borrowed.

38 minute readApril 26, 2006 at 09:12 AM
By
Linda E. Rappaport, Doreen E. Lilienfeld,
Amy B. Gitlitz
Clearing Up Executive Compensation

Part One of Two

The U.S. Securities and Exchange Commission (SEC) published its proposal to revamp the rules governing the disclosure of executive and director compensation on Jan. 27, 2006.

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