One in three U.S. public companies expect to significantly change their approach to disclosing information on how they reward their executives in the wake of the Securities and Exchange Commission’s proposed pay-for-performance disclosure rules, according to a new poll conducted by Towers Watson.
In April, the SEC issued proposed rules to implement the Dodd-Frank provisions that require companies to disclose the relationship between executive compensation “actually paid” and the company’s financial performance. The proposal would require company proxy statements to include a pay-versus-performance table and an explanation of the relationship between pay and performance.
The Towers Watson poll of 453 corporate executives and compensation professionals was conducted June 4, during a webcast on the proposed rules. According to the poll, 33 percent of respondents said they expect the pay-for-performance disclosure rule to fundamentally change their approach to executive pay disclosure.
The poll also found that a majority of respondents (55 percent) expect to provide additional information and analysis that go beyond what the proposed rules will require. Specifically, 37 percent said they plan to disclose additional information and analyses to help tell their pay-for-performance story, while 18 percent said they will perform, and may disclose, additional pay-for-performance analyses.