Top Executives Face More Scrutiny Over Pay in New SEC Rule
- ‘Pay-versus-performance’ regulation was required by 2010 law
- SEC Chair Gary Gensler says rule will benefit investors
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Pay for top executives at US companies will face more scrutiny under a new rule from the Securities and Exchange Commission.
Publicly traded firms will have to disclose additional details about how senior managers are paid, including performance incentives, the SEC said on Thursday. The regulation, which had long been delayed, aims to clarify ways that company’s financial performance impacts an executive’s pay, according to the agency.