Executive Compensation A Decade of Disclosure


In rules effective in 2006, the SEC put in place a principles-based regime for disclosure of executive compensation and related-party transactions. Enhancements and revisions in the intervening decade have modified the disclosure requirements in some crucial respects such as: Elimination of separate regulations and forms pertaining to small business issuers. Revisions to the method of accounting for stock and option awards. The Dodd-Frank Act also made its mark on executive compensation disclosure as it directed the SEC to craft rules requiring: Advisory votes on executive compensation. A disclosure and voting regime for golden parachute arrangements. Disclosure as to whether hedging arrangements are allowed and how compensation policies fo

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