Business Roundtable: SEC Proposal 'Appears Consistent'

Although it wants to review "in more detail" the U.S. Securities & Exchange Commission's (SEC) Jan. 17 executive-compensation proposal, John J. Castellani, president of the Washington, D.C.-based Business Roundtable, says the proposed regulation "appears consistent" with his group's principles of executive compensation.

Among other things, the SEC's proposal would require publicly traded companies to provide more information about the compensation of its CEO, CFO, the three other highest-paid executives and its directors. The changes would affect proxy statements, annual reports, securities registration statements and Form 8-K reports.

"It is important that any rules regarding disclosure of executive compensation have an appropriate way of calculating the value of stock options in order to avoid overstating compensation," says Castellani. "In addition, we want to make sure that the disclosure rules do not reveal to competitors strategic information about compensation tied to a company's business goals or product development plans."

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.