Alerts9.20.22
SEC Adopts Pay Versus Performance Disclosure Rules With Important Impacts on Public Companies
Highlights
The SEC has adopted broad new rules requiring public companies to disclose the relationship between executive compensation actually paid and financial performance
The new rules apply to all reporting companies, with some exceptions and with scaled disclosures permitted for smaller reporting companies
For calendar year companies, the new disclosures will be required in proxy statements and information statements beginning with the 2023 proxy season
On August 25, 2022, the Securities and Exchange Commission (SEC) adopted final rules requiring public companies to disclose the relationship between executive compensation actually paid and the financial performance of the company, also known as the pay versus performance requirement.
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