SEC Issues Final Rules Concerning Corporate Governance And Disclosure Of Executive Compensation

On December 16, 2009, the SEC issued final rules that are generally effective for the 2010 proxy season and are intended to enhance the disclosure of compensation and corporate governance matters that registered companies are required to provide to their shareholders. Public companies will need to analyze the impact of these rules quickly as they add significant disclosure requirements and information gathering for the 2010 proxy season. The text of the final rules is available at http://www.sec.gov/rules/final/2009/33-9089.pdf. The final rules provide for:

• New disclosure requirements regarding overall compensation policies that create incentives that are reasonably likely to expose the company to a material adverse risk;