SEC to Vote on Exec Comp Disclosure Package

July 20, 2006 ( - The Securities and Exchange Commission (SEC) will consider adopting its proposed executive compensation disclosure mandate at a July 26 meeting.

According to a notice of meeting agendas on the SEC’s Web site, during the open meeting the SEC will consider whether to adopt amendments to the disclosure requirements for executive and director compensation, related party transactions, director independence and other corporate governance matters, and security ownership of officers and directors.

Additionally, the SEC will consider the adoption of final rules requiring that disclosure under the amended items generally be provided in plain English.

The proposed rules, which were announced in January, would cover proxy statements, annual reports, registration statements and the commission Form 8-K. Companies would be required to detail compensation arrangements for the CEO, CFO, three highest paid executives and directors (See SEC Unveils Proposed Exec. Comp. Disclosures Mandate ).