• A New Era of Executive Compensation and Related Person Disclosure
  • March 28, 2007 | Authors: Robert S. Kant; Thomas G. LaWer; Steven B. Lapidus
  • Law Firms: Greenberg Traurig, LLP - Phoenix Office ; Greenberg Traurig, LLP - East Palo Alto Office; Greenberg Traurig, LLP - Miami Office
  • The Securities and Exchange Commission (the "SEC") voted unanimously on July 26, 2006 to adopt new disclosure regulations regarding executive and director compensation, related person transactions, and corporate governance matters. On December 20, 2006, the SEC adopted, as interim final rules, certain amendments to the new compensation disclosure requirements. The new disclosure requirements, as so modified, significantly modify the previous format of disclosure in SEC filings during a time of criticism in some quarters regarding the amount of executive compensation and compensation arrangements and public outrage about corporate scandals, including stock option backdating and springloading. All of the disclosures must be presented in "Plain English."