On January 27, 2022, the U.S. Securities and Exchange Commission (“SEC”) reopened the public comment period regarding “pay-versus-performance.” The rules, originally proposed in 2015, would require companies to disclose information relating to the relationship between executive compensation paid and the company’s financial performance. The rules are designed to provide shareholders with more information when casting votes regarding executive compensation and board directors.
Under the proposal, companies would be required to disclose average compensation for executive officers and actual pay for CEOs. Additionally, companies would be required to disclose a metric known as total shareholder return which would aid investors in determining a company’s performance. According to SEC Chair Gary Gensler, “[i]f adopted, this proposed rule would strengthen the transparency and quality of executive compensation disclosure.”
The full proposal can be found here.
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Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Georgia and Pennsylvania.
Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.
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Faruqi & Faruqi
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Tel: (212) 983-9330
Fax: (212) 983-9331