Last Thursday, the Securities and Exchange Commission approved amendments to its executive compensation disclosure rules, which will require new “Pay Versus Performance” disclosures to be included in proxy statements, effective in time for the 2023 proxy season.
The new rules mandate specific disclosures regarding executive pay and performance, and in order to prepare those disclosures, companies will need to collect new data, make a number of novel judgments, and obtain input from a variety of stakeholders. With proxy season on the way, affected companies will want to act promptly to develop a workplan and to begin considering the details of their disclosure strategies.
The update available below (PDF) summarizes the new rules and outlines next steps for issuers to consider on the path to compliance.
