Breaking NewsTreasuryandRisk.com will be offline for scheduled maintenance Saturday May 8 3 AM US EST to 12 PM EST. We apologize for the inconvenience.

 
X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Will 2006 be remembered as the year that widespread executive compensation reforms took hold? Final rules have yet to be set, but the current proposals represent the biggest overhaul by the Securities and Exchange Commission (SEC) in 14 years. Companies, of course, aren’t being told how they should compensate senior executives, but the approach of letting more sunlight into the process of determining pay packages, and getting rid of much of the overly lawyered boilerplate, may be the regulators’ best weapons. As SEC chairman Christopher Cox put it when he announced the proposed measures, “Our purpose ?? 1/2 is to help investors keep an eye on how much of their money is being paid to the top executives who work for them.”

More certain is the fact that the final rules will add to the responsibilities of CFOs and put more emphasis on their own pay. Under the proposals, all public companies would be required to furnish a total compensation figure–as well as details including stock- and options-based rewards, perquisites, pensions and post-employment plans–for their CEO, CFO, the three other highest-paid executive officers and all directors. In addition, a new Compensation Discussion and Analysis (CD&A) section would replace the current Compensation Committee Report and Performance Graph. The CD&A would have to be filed with regulators, thereby requiring a sign-off certification by the CEO and CFO.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.