Corporations will have to give out more and clearer information about the pay and perks of top managers and directors under rules adopted by the US Securities and Exchange Commission by a 5-0 vote on Wednesday.
The rules mandate more openness by corporations on executive stock option grant policies, without barring or endorsing any particular option grant practices. The mandate comes at a time when 80 companies are under SEC investigation over possible improper manipulation of option grant dates.
The SEC also voted to seek more public comment on a controversial part of the disclosure rules nick-named "the Katie Couric clause," after the former co-host of NBC's popular "Today" show tapped to present CBS's nightly newscasts. As drafted, this part could have forced companies to disclose pay of some top, non-executive talent.
As revised from an original proposal, the rules would require disclosure only of the pay of top personnel who have policy-making responsibilities within large corporations.
"This would exclude a professional athlete, a salesperson , an entertainment person," said John White, director of the corporation finance division of the SEC.