SEC Proposes Rules For Expanded Pay Versus Performance Disclosures

The Securities and Exchange Commission (SEC) recently proposed new and amended disclosure rules to require that reporting companies enhance their executive compensation disclosure by including interactive tables and narrative examining the relationship between executive compensation and financial performance. The SEC's current rules require that prior to any shareholder meeting, shareholders receive a proxy or information statement disclosing the important facts about the issues on which the shareholders are being asked to vote. The new rules (proposed in response to provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act) are designed to provide shareholders with meaningful new information and metrics to aid in making informed decisions.