|  | | 2006 News and Press Releases | | |
HEADLINE NEWS:
Executive Compensation Comes Into The Clear
Terence OHara
Washington Post. December 15, 2006
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EXCERPT: Starting today, companies must add a section to the annual proxy statement sent to shareholders that analyzes compensation. In this section, company directors and managers must describe in detail how they determined compensation for the chief executive and other top officials. The rules also mandate the inclusion of a compensation table laying out the pay for the top five executives. The table includes items that previously were not considered part of a current year's compensation, such as stock-option awards and the change in pension value in the event of an executive's retirement. The SEC has also tightened rules for valuing and disclosing perks, including use of the company jet, club memberships and personal trainers. "The new disclosure will allow not only shareholders but directors and management to compare themselves with other companies," said Andrew Gibson, a partner at accounting firm BDO Seidman, who has helped about 100 companies prepare for the new rules. "We'll get the numbers, see what other people are doing and go from there." |
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