- Requires the SEC by June 2, 2016 to issue regulations which "scale or eliminate" requirements of Regulation S-K, which includes executive compensation disclosures in the proxy statement, to reduce reporting burdens and streamline the disclosure reporting requirements by getting rid of "duplicative, overlapping, outdated, or unnecessary" information.
- Within a year of enactment, requires the SEC to publish a study on Regulation S-K, and within a year after publication to issue rules based on the study to:
- Determine the best method to modernize and simplify the reporting requirements to reduce costs and burdens on companies;
- Emphasize a more company focused approach to disclosure which would provide investors with material information while avoiding boilerplate language; and
- Evaluate methods of information delivery and presentation and explore methods for discouraging repetition and the disclosure of immaterial information.
- Determine the best method to modernize and simplify the reporting requirements to reduce costs and burdens on companies;
Published on:
Authors: Timothy J. Bartl
Topics:
The recently adopted transportation bill requires the SEC to accelerate the pace of its project to reform the corporate disclosure regime, including executive compensation disclosures, in an effort to reduce reporting burdens and eliminate "duplicative, overlapping, outdated, or unnecessary" information. The provision addressing disclosure reform was approved shortly after Keith Higgins, the SEC's Director of the Division of Corporation Finance, announced his intention to embark on a comprehensive review of executive compensation disclosures this year. The mandate in the transportation bill, however, now provides specific deadlines and accountabilities. Specifically, the transportation law:
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