SEC Approves Enhanced Disclosure About Risk, Compensation and Corporate Governance

• Date: December 18, 2009
• Source: www.sec.gov

SEC has devised a final rule on Proxy Disclosure Enhancements which will enhance the information provided to shareholders so they are better able to evaluate the leadership of public companies. Good Corporate Governance is a result of proper accountability and accountability is impossible without transparency. 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.