• Current Environment Brings New Governance Challenges
  • August 28, 2009 | Authors: Richard E. Baltz; Laura Badian
  • Law Firm: Arnold & Porter LLP - Washington Office
  • In July, the Securities and Exchange Commission (SEC) proposed new rules that will require enhanced disclosures about executive compensation and governance in proxy statements and the annual report on Form 10-K. The proposed changes put greater emphasis on how companies, and boards of directors, manage and oversee risk, both generally and in the context of compensation. The compensation-related proposals require companies to discuss the relationship of their overall compensation approach--applicable to all employees and not just executive officers--to risk. The compensation proposals are consistent with the Obama Administration's view that the compensation structures at many companies reward excessive risk-taking at the expense of the long-term health of such companies. www.arnoldporter.com