Proposal Aims for Better Exec Perk Disclosure
More detailed reporting of top executive compensation, including such perks as personal use of corporate aircraft, is the aim of proposed rulemaking from the Securities and Exchange Commission (SEC). The Wall Street Journal calls the proposals the “most sweeping overhaul of pay disclosure rules in 14 years.” One of the proposals would lower the threshold at which perks must be disclosed. Companies currently must reveal perks if the total aggregate value is above $50,000, or 10 percent of total annual salary and bonus. The proposal lowers the threshold to $10,000. “We also propose to require that disclosure under the amended items generally be provided in plain English,” the SEC said. “They are also intended to provide investors with a clearer and more complete picture of the compensation earned by a company’s principal executive officer, principal financial officer and highest paid executive officers and members of its board of directors.” Comments are due April 10.