Want to buy your CEO a $15,000 umbrella stand? Put it in the proxy. The U.S. Securities and Exchange Commission proposed new guidelines Tuesday on executive-pay disclosure. Currently, only perks worth over $50,000 must be disclosed; the proposed threshold is $10,000. The total compensation for the CEO, CFO and three other types of top corporate executives must now be disclosed in a Summary Compensation Table. The table must include a value for all stock and stock-option awards, and the increase in the value of executives' pension funds. Companies also have to include a more extensive narrative explaining the reasons behind their compensation structure.
All this information could confuse lay investors, according to Paula Todd, a managing principal and senior executive compensation consultant with consulting firm Towers Perrin. She discussed both the potential and the pitfalls of these proposals with Forbes.com.
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