By Cydney Posner

Over the weekend, the Washington Post published an AP story, based on an interview with SEC Chair Mary Schapiro, about potential SEC changes to executive pay disclosure. While a number of the potential changes were discussed by Schapiro in an April speech, some of the points are new:

  • For equity awards, instead of reporting in the SCT the amount recorded for accounting purposes, requiring use of the estimated present value of all stock-based awards on the day they are granted.
  • Requiring more detail about how boards manage risk and how risk affects the setting of compensation, including how compensation plans relate to longer-term performance.
  • Increasing disclosures relating to benchmarking.
  • Increasing disclosure about director qualifications.
  • Expanding disclosure about compensation of employees outside the top five now listed in proxy statements, such as the structure of bonus programs for the broader work force.

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