HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.crs/crsmthabefr0001 and id is 1 raw text is:
Order Code RS22583
January 26, 2007
CRS Report for Congress
Executive Compensation: SEC Regulations
and Congressional Proposals
Michael V. Seitzinger
Legislative Attorney
American Law Division
Summary
Concern about shareholder value, corporate governance, and the economic and
social impact of escalating pay for corporate executives has led to a controversy
regarding the practices of paying these executives. On July 26, 2006, the Securities and
Exchange Commission voted to adopt revisions to its rules on disclosure of executive
compensation. On December 22, 2006, the SEC announced that it had adopted changes
in the July 26 rules. These December 22 changes have become somewhat controversial,
with opponents saying that they obfuscate executive compensation and with proponents
saying that the changes are necessary to give a truly accurate picture of executive
compensation. Congressional proposals concerning executive pay have thus far not
focused on the SEC rules. Instead, proposals have been made concerning additional
disclosure of executive compensation and limiting the amount of deferred compensation
for tax purposes. This report will be updated as warranted.
Concern about shareholder value, corporate governance, and the economic and social
impact of escalating pay for corporate executives has led to a controversy regarding the
practices of paying these executives. In a stated attempt to provide investors with a
clearer and more complete picture of compensation to principal executive officers,
principal financial officers [and] the other highest paid executive officers and directors,'
the Securities and Exchange Commission (SEC or Commission) has recently issued rules
concerning the disclosure of executive compensation. The rules, however, have created
a controversy of their own.
On July 26, 2006, the SEC voted to adopt revisions to its rules concerning disclosure
of executive compensation.2 These compensation disclosure rules were particularly
focused upon companies' providing investors with details about executives' stock-option
1 71 Fed. Reg. 78,338, 78,339 (Dec. 29, 2006).
2 71 Fed. Reg. 53,158 (Sept. 8, 2006), amending 17 C.F.R. Parts 228, 229, 232, 239, 240, 245,
249, and 274.
Congressional Research Service - The Library of Congress
Prepared for Members and Committees of Congress](ViewImageLocal?handle=hein.crs/crsmthabefr0001&div=1&collection=&method=preview&ext=.png&size=3)