Corporate and Securities Alert: SEC Moves More Toward Annual-Based Reporting Approach to Compensation Disclosures


The staff of the Securities and Exchange Commission (“the Staff”) is engaged in a general movement away from taking an event-based reporting approach to compensation disclosures on Form 8-K in favor of taking an annual-based reporting approach. The Staff may no longer require a report under Item 5.02(e) of Form 8-K for discretionary bonuses paid to named executive officers (“NEOs”) even when those officers do not meet performance criteria. However, the Staff will still require the registrant to disclose such compensation decisions to stockholders before the next annual meeting.

A hypothetical illustrates the Staff’s movement to annual-based reporting of compensation disclosures...

Please see full alert below for more information.

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Published In: Administrative Agency Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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