SEC Proposes Sweeping Compensation Disclosure Reform

On January 27, 2006, the Securities and Exchange Commission (the "SEC") proposed sweeping amendments to the disclosure requirements for executive officer and director compensation and benefits. The SEC also proposed amendments relating to disclosure of related person transactions and certain other items as well as modification of the Form 8-K requirements for reporting compensation arrangements. The amendments would affect the disclosure required in registration statements, proxy and information statements, periodic and current reports and certain other filings.

The amendments would require that, at least for Securities Exchange Act of 1934 ("Exchange Act") reports, the affected disclosures be presented in "Plain English" – whether they were included in the report or incorporated by reference.