With more scrutiny on how much executives are paid, the SEC is considering several proposals on compensation and whether conflicts of interest exist between a company's managers and board members.
The commission said it will take a look at a company's overall compensation approach including incentive structures and potential conflicts of interest by compensation consultants, including disclosure of relationships between the consultants and the company and their affiliates. The SEC is also considering a proposal on greater disclosure about director nominees, including their experience and qualifications to serve on the board or on particular board committees.
SEC Chairman Mary Schapiro said while it is not the agency's role to set pay scales or cap compensation, it does want to ensure that investors have the information they need to make sound investment decisions, whether those decisions impact proxy voting or a decision to buy or sell a stock.
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