On July 26, 2006, the SEC approved amendments to its disclosure requirements for executive and director compensation, related party transactions, director independence, other corporate governance matters, and security ownership of officers and directors. The amendments were originally proposed in January 2006 and were the subject of a record number of comment letters.
In unanimously adopting the new rules, the commissioners stressed at several points their view that the purpose of the new rules is to enhance disclosure and better inform boards and stockholders about levels of compensation, and that it was not the SEC’s job to judge what constitutes the right amount of executive compensation or to place limits on the amount of executive compensation.
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