More C-Suite Transparency: SEC Proposes New Disclosure Rules on CEO Pay - The Minute

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More C-Suite Transparency: SEC Proposes New Disclosure Rules on CEO Pay - The Minute

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New proposed #SEC rules would require more C-Suite transparency http://3bl.me/8s2fsy via @3blmedia #CSRminute
Thursday, April 30, 2015 - 5:00pm

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CONTENT: Multimedia with summary

The SEC has proposed new disclosure rules to require companies to make it much clearer to investors how compensation for top executives is linked to financial performance. Correlations between corporate executive pay and shareholder returns are hard to extract from current reports. The proposed new rules would mandate consistent, pay-for-performance metrics that make such links easier to evaluate.

If adopted, some 6,000 public companies would have to disclose top executives’ actual pay, including stock options, in their annual proxy reports. Those figures would be compared in new tables with the company’s annual return to shareholders during the same period, and would also be compared with those of other companies of similar size and type. All information would be published ahead of shareholder voting at annual meetings and would be provided in an interactive data format. The SEC is also working on related rules that would mandate reporting on the pay gap between CEOs and their employees. All of these regulations are aimed at providing more transparency to investors, more accountability for boards of directors, and ultimately, better business practices.

I’m John Howell for 3BL Media.

Video source: More C-Suite Transparency: SEC Proposes New Disclosure Rules on CEO Pay

Keywords: 3bl Media | Responsible Business & Employee Engagement | CSR Minute | Securities and Exchange Commission | Sustainable Finance & Socially Responsible Investment | business transparency | disclosure rules

CAMPAIGN: The CSR Minute

CONTENT: Multimedia with summary

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