New Executive-Pay Rules Pass Second SEC Vote

Law360, New York (July 26, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission capped months of debate Wednesday after voting unanimously to approve bold changes to executive-pay disclosures for publicly traded companies.

The changes, expected to take effect next year, are intended to help investors clearly understand how top executives benefit from nonobvious income, such as stock options and other perks.

The rules will also break through traditionally thick corporate lingo by requiring that forms be completed using “plain English,” thus making disclosures easier to read.

In addition, companies will, for the first...
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