SEC Revises Executive Compensation Disclosure

The Securities and Exchange Commission (SEC) has adopted final rules amending the disclosure requirements for executive and director compensation, related person transactions and corporate governance matters. The final rules adopt the amendments substantially as proposed in January 2006. The amendments, which are the first significant revision of the executive compensation disclosure rules in 14 years, affect disclosure in proxy and information statements, periodic reports and registration statements. They also modify the current reporting requirements of Form 8-K regarding compensation arrangements.

The rules are effective for proxy and information statements and registration statements under the Securities Act of 1933 (Securities Act) and the Securities Exchange Act of 1934 (Exchange Act) that are filed on or after December 15, 2006, and are required to include executive compensation disclosure for fiscal years ending on or after December 15, 2006. Accordingly, companies with