Seventy-seven percent of senior executives say the Securities and Exchange Commission's new proposal on disclosure of executive compensation will have minimal impact on executive pay, according to a survey by Christian & Timbers, an executive search firm.
The firm surveyed 176 senior executives from February 1 through February 15, 2006, finding that just 9 percent of respondents predict that the commission's proposed rules will put significant downward pressure on executive compensation.
"Most CEOs are not overly concerned about how the proposed SEC regulations on executive compensation disclosure would impact their pay" says Stephen Mader, vice chairman of Chris tian & Timbers. "It's the compensation committee that will feel the impact of the proposed disclosure regulations. They're more attuned to how perks will play with investors and corporate watchdogs."
The proposed rules would affect disclosure in proxy statements, annual reports, and registration statements. The proposals would require companies to provide most of this disclosure in plain English.
The SEC says the proposed rules aim to make executive compensation clearer to investors. The rules would require more complete disclosure of compensation of the chief executive officer, chief financial officer, the three other highest paid executive officers, and the directors.