Execs Responsible For Misstatements: SEC

Law360, New York (February 13, 2006, 12:00 AM EST) -- As part of its attempt to make executive compensation more transparent, the Securities and Exchange Commission has included a provision in its newly passed regulations that holds executives directly responsible for any misstatements made by the company regarding their pay or bonuses.

The rules call for a company to submit a “compensation discussion and analysis” with each proxy statement. This report would describe in exact terms how and why executives are being compensated.

“We believe that it is appropriate for companies to take responsibility for disclosure...
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