The Securities and Exchange Commission is looking at possible ways to make it easier
for shareholders to determine how much companies are paying their top executives,
the Washington Post reports.
Shareholder groups have been urging regulators to adopt new rules on how publicly
traded companies disclose executive compensation, saying companies have made
information about executive compensation and benefits increasingly opaque.
The SEC appears to be listening.
"I believe in people being well paid for really doing something,"
says SEC chief William H. Donaldson. "[But] as far as salaries and compensation
are concerned, there remains obfuscation about who's being paid what. . . .
We have to think through what new rules we want to make things more clear than
they are now."
Shareholder groups argue that companies should disclose such information in
plain English, the newspaper notes.
The newspaper reports that the SEC is still in the early stages of addressing
the issue, so no details on possible rules are available. New rules would come
no sooner than next year, according to the newspaper.