SEC Adopts Sweeping Changes To Executive And Director Compensation Disclosure Rules - Part 1

On July 26, 2006, the SEC adopted sweeping changes to its rules for disclosing compensation of executive officers and directors of public companies, information about related person transactions, director independence and other corporate governance matters. These changes will generally be effective for the 2007 proxy season. The SEC also adopted changes to Form 8‑K disclosure requirements, limiting "real time" disclosures of management contracts and compensatory plans, contracts and arrangements and consolidating all Form 8-K disclosures regarding management and director issues under a single item. The Form 8-K changes will be effective 60 days after the final rules are published in the Federal Register. The full text (430+ pages) of the final rules, SEC Release No. 33-8732, was made available on August 11, 2006 and can be found at www.sec.gov/rules/ final/2006/33-8732.pdf.