US SEC proposes scaling back rules on executive pay disclosure
SPY•The SEC proposed reducing executive pay disclosures for publicly traded companies. Most would report pay packages for only the CEO and CFO, and the threshold for reporting workplace perks would rise from $10,000 to $150,000.
1. Proposed disclosure changes
The SEC proposed scaling back requirements for publicly traded companies to disclose detailed information about executive and board-member compensation. SEC Chair Paul Atkins said the changes would limit disclosures to information investors need to know.
2. Pay and perks reporting
Under the proposal, most covered companies would disclose pay packages for only the CEO and CFO, and the threshold for reporting workplace perks would rise from $10,000 to $150,000. The proposal would also reduce the number of tables in proxy materials and shrink the population of workers used to determine the median employee whose compensation is compared with top executives’.
3. Pay disparity context
Better Markets said CEO pay had risen more than 1,000% over 50 years, with median S&P 500 pay reaching $17 million in 2024, while worker pay had climbed 24% over that period.
