The SEC wants to help shareholders decide how much execs make
Reuters
Investors in publicly traded companies already vote on executive pay, but now the SEC wants to help them better understand the decisions they're making, reported The Wall Street Journal's Andrew Ackerman and Joann S. Lublin.
Basically the SEC's proposal, which is actually part of the 2010 Dodd-Frank bank regulations, will help shareholders make informed decisions by comparing executive pay with the companies' financial performance - measured, importantly, by total shareholder return.
How would this look on paper? For one thing, companies would need to start including a new table in their SEC filings disclosing "actual pay" (which would not include vested shares), according to the report.
Right now, CEOs earn some 124x their average bankers. Goldman Sachs' CEO Lloyd Blankfein's compensation rose by $1 million last year from the year prior, to a total $24 million, while Morgan Stanley's CEO, James Gorman, saw his pay jump by a third.
The SEC also wants to force companies to disclose their pay gaps between chief executives and other employees, according to the report. That's in keeping with an ongoing SEC effort to tackle executive compensation and punish risky behavior.
But as for this latest proposal, it is the shareholders, not the regulators, who will emerge the real winners.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market