Executive Perks Subject of SEC Proposal

 - January 10, 2007, 10:58 AM

More detailed reporting of top executive compensation, including such perks as personal use of corporate aircraft, is the aim of new proposals under consideration by the Securities and Exchange Commission. The Wall Street Journal calls the proposals the “most sweeping overhaul of pay disclosure rules in 14 years.” The SEC will consider whether to formally adopt the proposals at a public meeting next Tuesday. One of the proposals would lower the threshold at which perks must be disclosed. According to the Journal, 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. New SEC chairman Christopher Cox told the Journal, “The prevalent forms of compensation have migrated away from what is transparent to opaque.”