SEC Adopts Final Rules Concerning Executive Compensation and Related Disclosure
On August 11, 2006, the Securities and Exchange Commission released new rules that amend disclosure requirements for executive and director compensation, related person transactions, director independence and other corporate governance matters, and security ownership of officers and directors. The new rules represent the SEC’s undertaking of the most significant revisions of its rules governing executive compensation in 14 years. This memorandum provides background regarding the new rules.