SEC Adopts Amendments to Executive Compensation Disclosure Rules

On July 26, 2006, the Securities and Exchange Commission adopted amendments to the rules requiring disclosure of executive and director compensation, related person transactions, director independence and other corporate governance matters, and security ownership of officers and directors.¹ While the SEC added new rules requiring disclosure of option grant practices and made certain modifications based on the record number of comments received, it appears that the final rules have been adopted substantially as proposed.² Certain modifications to the proposed rules are highlighted in italics below. The full adopting release with important details is expected to be published by the SEC shortly.