SEC Proposes Overhaul of Executive Pay Disclosure Rules

The U.S. Securities and Exchange Commission is advancing an initiative to modernize how publicly traded firms report their leadership compensation packages. SEC Chair Paul Atkins has characterized the existing framework, unchanged since 1992, as a "Frankenstein patchwork of rules."

Public companies presently must file detailed reports about remuneration provided to their five highest-compensated officers, specifically naming the CEO, CFO, and three additional top earners. These filings must include methodology explanations and performance-based compensation breakdowns. READ MORE

SEC amendments to company filer statuses would reduce executive pay disclosure

As part of its efforts to simplify US public company reporting and disclosure requirements, the Securities and Exchange Commission (SEC) proposed sweeping amendments to its public company reporting framework on May 19. The changes include significant reductions to required executive pay disclosure for most public companies. Only large accelerated filers (LAFs), which are defined as those with public float of $2 billion or more, would still be required to comply with the current rules. All other companies (approximately 80% of current public companies) and, for at least a five-year period after going public, newly public companies would be categorized as non-accelerated filers (NAFs). NAFs would be able to take advantage of scaled disclosure rules that currently apply only to emerging growth companies (EGCs) and smaller reporting companies (SRCs). A subcategory of small NAFs with total assets of $35 million or less (SNFs) would receive additional accommodations. READ MORE