|S.E.C. to Require More Disclosure on Executive Pay|
|Topic||Human Resources Management|
|InfoTrac Reference|| A140981267
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|Key Words||Securities Exchange Commission, executive compensation, wage clarity|
The Securities and Exchange Commission (S.E.C.) voted unanimously this week to change the way that companies report their pay for senior executives with the goal of achieving greater disclosure on actual total compensation. The rule is expected to be enforced beginning with the 2007 proxy season. The new rule was suggested after corporate scandals at the New York Stock Exchange and Tyco International brought criticism of excessive executive pay. The rules established for disclosure of executive pay by the Commission in 1992 sought greater disclosure as a way to combat excessive pay practices. In the meantime, companies have skirted the pay issue by coming up with hidden benefits for executives, ranging from paying their taxes to allowing them free use of corporate jets.
|Source||“S.E.C. to Require More Disclosure on Executive Pay,” The New York Times, January18, 2006, pA1(L).|
|Instructor Discussion Notes|| Discussion Notes
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