Regulatory Alerts2022-01-27
Reopening of Comment Period for Pay Versus Performance
The Securities and Exchange Commission has reopened the comment period for its proposed Pay Versus Performance rule, which amends executive compensation disclosure requirements to mandate a clear tabular description of how compensation actually paid relates to corporate financial performance. The proposed rule requires registrants to disclose metrics including Total Shareholder Return, pre-tax and net income, and a company-selected performance measure for the principal executive officer and other named executive officers over multiple fiscal years. Interested parties may submit comments electronically or by mail until March 4, 2022, to address evolving compensation practices and refine the rule’s implementation of Section 953(a) of the Dodd-Frank Act.