A roundtable discussion of executive compensation disclosure requirements will be hosted next month by the Securities and Exchange Commission. The SEC announced that the event will be held June 25th at the SEC’s headquarters at 100 F Street, N.E., Washington, D.C. It will be open to the public.
In a statement, SEC Chairman Paul S. Atkins noted that when the commission instituted tabular executive compensation disclosure in 1992 it was easily comprehensible, focusing on a graphical presentation of total executive compensation with comparisons against compensation of executives in peer firms and against the issuer’s performance.
“In the intervening years, disclosure requirements have been expanded to focus more and more on variations of components of compensation, rather than on total compensation,” said Atkins. “While it is undisputed that these requirements, and the resulting disclosure, have become increasingly complex and lengthy, it is less clear if the increased complexity and length have provided investors with additional information that is material to their investment and voting decisions.”
Atkins said it is important for the SEC to review its rules to make sure they are cost-effective and that that the information being disclosed is material without an overload of immaterial information. The roundtable discussion will be part of this review, and will include representatives from public companies and investors, as well as other experts in the field.
The discussion will be streamed live on SEC.gov, and a recording will be posted at a later date. Members of the public who wish to provide their views on executive compensation disclosure requirements may submit comments electronically or on paper
Information regarding the roundtable’s agenda and speakers will be posted before the event.
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