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Complying with the SEC's Compensation Discussion and Analysis Requirements
- Article from:
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The CPA Journal
- Article date:
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September 1, 2008
- Author:
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Copyright informationCopyright New York State Society of Certified Public Accountants Sep 2008. Provided by ProQuest LLC. (Hide copyright information)
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The latest SEC regulation focusing on executive compensation, the Executive Compensation and Related Person Disclosure amendment to Regulation S-K, aims to improve shareholder governance by providing a more complete and transparent view of executive compensation (sec.gov/rules/final/2006/33-8732a.pdf).
The new rule requires a company to provide extensive disclosure information about compensation for its most highly paid officers, including the chief executive officer, the chief financial officer, and directors. These compensation amounts must be summarized in an easy-to-read table that includes a total compensation column. All explanations are required to be in "plain English." The new rule ...