1. What is the Pay Versus Performance Rule?

See our Fenwick alert for a high-level overview of the Pay Versus Performance (PvP) Rule. See also the SEC fact sheet and adopting release. Briefly, the PvP Rule adds a new Item 402(v) of Regulation S-K, requiring companies to disclose the relationship between executive “compensation actually paid” (CAP) and the company’s financial performance. This will apply to any proxy and information statements requiring executive compensation disclosure for fiscal years ending on or after December 16, 2022. For many companies, this means the disclosure will first be required in the 2023 proxy statement.

Please see full Publication for more information.