SEC Proposes Rules On Mandatory Pay For Performance Disclosure

On April 29, 2015, the Securities and Exchange Commission (SEC) proposed rules that would require public companies to disclose the relationship between executive compensation and the company's financial performance. The rules would apply to public companies other than emerging growth companies, foreign private issuers, and registered investment companies, and the disclosure would be required in proxy statements or information statements in which disclosure of executive compensation currently must be included under Item 402 of Regulation S-K.

The rules were proposed in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act mandate that the SEC adopt rules requiring companies to disclose the relationship between their performance and executive compensation.