Wednesday, July 26, 2006

Executive Pay Disclosure Rules Revamped

The vote was unanimous — five in favor, none against — on Wednesday as the Securities and Exchange Commission adopted new rules requiring companies to provide more details on executive compensation. As of Dec. 15, companies’ annual filings will have to include tables with a single figure (with as many zeroes as necessary) representing the total yearly compensation for chief executives, chief financial officers and the next three highest-paid executives. All kinds of non-cash perks, including retirement benefits, will now have to be revealed.

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