By Cydney Posner

The WSJ is reporting today that the SEC plans to propose rules, as early as next month, requiring that companies disclose in general terms how they compensate lower-ranking employees, especially to the extent that it affects the company's overall risk management. You may recall that the SEC previously attempted to elicit information about highly paid non-executives, but met with stiff resistance to the so-called "Katie Couric" rule, which ultimately was not adopted. Apparently, the approach this time will require only general disclosures. Companies would also have to explain their ties to compensation consultants who often structure pay packages for top executives as well as information about the overall design of the company's compensation arrangements and how compensation relates to an employee's performance over the long run.

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