On December 16, 2009, the Securities and Exchange Commission "approved rules to enhance the information provided to shareholders so they are better able to evaluate the leadership of public companies.
Additional Materials
Final Rule: Proxy Disclosure Enhancements
Beginning in the upcoming annual reporting and proxy season, the new rules will improve corporate disclosure regarding risk, compensation and corporate governance matters when voting decisions are made.
In particular, the new rules require disclosures in proxy and information statements about:
The relationship of a company's compensation policies and practices to risk management.
The background and qualifications of directors and nominees.
Legal actions involving a company's executive officers, directors and nominees.
The consideration of diversity in the process by which candidates for director are considered for nomination.
Board leadership structure and the board's role in risk oversight.
Stock and option awards to company executives and directors.
Potential conflicts of interests of compensation consultants.
The new rules, which will be effective Feb. 28, 2010, also require quicker reporting of shareholder voting results."
Additional Materials
Final Rule: Proxy Disclosure Enhancements
Beginning in the upcoming annual reporting and proxy season, the new rules will improve corporate disclosure regarding risk, compensation and corporate governance matters when voting decisions are made.
In particular, the new rules require disclosures in proxy and information statements about:
The relationship of a company's compensation policies and practices to risk management.
The background and qualifications of directors and nominees.
Legal actions involving a company's executive officers, directors and nominees.
The consideration of diversity in the process by which candidates for director are considered for nomination.
Board leadership structure and the board's role in risk oversight.
Stock and option awards to company executives and directors.
Potential conflicts of interests of compensation consultants.
The new rules, which will be effective Feb. 28, 2010, also require quicker reporting of shareholder voting results."