On Dec. 22, 2006, the SEC revised its recently adopted disclosure requirements for executive and director compensation. The most significant change for most companies is that they will report the value of equity compensation awards in incremental amounts over the vesting period for the award, rather than reporting the full value of the award in the year it was granted.
Under the revised requirements, disclosure of stock-based awards in a company's summary compensation table and director compensation table will generally correspond to compensation costs recognized in their financial statements for the same periods pursuant to the accounting rules of Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R). The change may affect which individuals are identified as "named executive officers" for reporting purposes.
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