Executive pay 'needs greater disclosure'

News Article - 23 May 2012
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The US Securities and Exchange Commission (SEC) needs to tighten reporting requirements relating to executive pay, according to the CFA Institute Centre for Financial Marketing Integrity.

SEC implemented a number of new compensation disclosure rules which included the requirement that all annual compensation paid to chief executives and directors be detailed in the company proxy statement.

The requirements were put into place from November 7th 2006 and according to the news provider, the CFA are just one of many organisations dissatisfied with their application.

Reported in Accountancy Age magazine, the institute has called for SEC action in ten different areas, saying they were "highly disappointed in the inconsistent and overly complex implementation of the rules exhibited by many companies".

It also added that firms were avoiding disclosure "by inappropriate claims that compensation metrics are proprietary" and using "endless and complex legal boiler-plate".

The comments were made in a letter to the director of the SEC's corporation finance division John White.

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