SEC Adopts Pay Versus Performance Disclosure Rules

The Securities and Exchange Commission today adopted amendments to its rules to require registrants to disclose information reflecting the relationship between executive compensation actually paid by a registrant and the registrant’s financial performance. The rules implement a requirement mandated by the Dodd-Frank Act. The Commission proposed pay versus performance disclosure rules in 2015 and reopened the comment period on the proposal in January of this year. “The Commission has long recognized the value to investors of information on executive compensation,” said SEC Chair Gary Gensler. “Today’s rule makes it easier for shareholders to assess a public company’s decision-making with respect to its executive compensation policies.