Friday, August 31, 2007
The SEC is causing consternation in executive offices at some 300 corporations. After reviewing the disclosures of executive compensation under its new rules, it has sent letters asking for additional information, including benchmarks and targets used to determine performance based compensation. The Wall St. Journal quotes from one letter: "If disclosure of the performance-related factors would cause competitive harm, please discuss further how difficult it will be for the named executive officer or how likely it will be for you to achieve the target levels or other factors." Other questions have involved the work performed by compensation consultants. The companies are supposed to respond by Sept. 21. John White, Director of Corporation Finance, has stated publicly that the initial disclosures were "vague." WSJ, SEC Asks Firms to Detail Top Executives' Pay.