SEC Adopts New Rules for Executive Compensation and Related Party Disclosure

On August 11, 2006, the Securities and Exchange Commission (SEC) issued final rules relating to disclosure requirements for executive and director compensation, related party transactions, director independence, security ownership of officers and directors and other corporate governance matters, in public company proxy statements and other SEC filings. (Special rules apply to small business issuers.) The final rules will generally apply to the 2007 annual proxy statements for companies whose fiscal year ends on or after December 15, 2006. The text of the final rules may be found on the SEC site.

The final rules aim to:

• provide investors with a clearer and more complete picture of compensation of principal executive officers, principal financial officers, the other highest paid executive officers and directors;