SEC Proposes Rules to Enhance Compensation and Corporate Governance Disclosures


On July 1, 2009, the Securities and Exchange Commission (the “SEC”) unanimously approved proposed changes to the proxy rules designed to enhance disclosure of:

*the relationship of the company’s overall compensation policies to risk;

*the qualifications of directors, director nominees, and executive officers;

*the company’s leadership structure;

*and the role and potential conflicts of compensation consultants.

The SEC also proposed accelerating the reporting of results of shareholder votes by requiring such disclosures under a new Form 8-K item.[1]

This legal update is based on information provided at an SEC open meeting and in the SEC’s press release announcing the proposal.[2] We will provide a more detailed discussion of the proposals when the text of the rule proposals is available.

Please see full update for more information.

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