According to corporate governance experts, a number of factors—particularly the Securities and Exchange Commission’s new executive compensation disclosure rules—may cause shareholders to take a more active stance on executive pay issues in the coming year. And some are utilizing a new tool: stockholder advisory vote proposals.
As Compliance Week has previously reported, the SEC’s new rules become effective Nov. 7, 2006. Companies must comply with the amended requirements of Form 8-K for triggering events occurring on or after that date. Experts note that the expanded disclosures on executive pay come at the same time a number of other governance-related issues are coming to a boil.
