The Securities and Exchange Commission Approves Enhanced Disclosure Requirements on Risk, Compensation and Corporate Governance
On December 16, 2009, the Securities and Exchange Commission (SEC) approved final rules intended to enhance information disclosed to investors, so they are better able to evaluate the leadership of publicly-traded companies. These rules are substantially the same as the proposed rules issued on July 10, 2009, with some minor modifications. The amendments are effective for proxies filed on or after February 28, 2010.
The rules introduce substantial new reporting requirements regarding director qualifications, corporate governance and potential risk from employee compensation policies and practices.
Download this document for a summary of these new SEC rules and an overview of their potential implications.