What's in a Day's Pay? SEC Proposes New Rules for Disclosing Executive Compensation
The Securities and Exchange Commission proposed new regulations in 2006 that would substantially alter the rules governing the disclosure of executive pay in proxy statements. Companies would have to reveal a single dollar figure representing total compensation, including salary, bonus, perquisites, all equity and performance-based pay, and pension and deferred compensation arrangements. These regulations will give shareholders and other readers of proxy statements a clear understanding of the magnitude of executive pay and avoid surprises.