The Securities and Exchange Commission's proposal to increase disclosure of executive compensation is currently under approval with Federal regulators, but some worry that the new rule may not affect or change how much CEOs are earning.
The Atlanta Journal reports that the proposed rules would mandate that companies disclose how much executives are being paid, along with any perks that that the job offers them. The SEC wants figures on pay, perquisites, severance, deferred compensation and retirement benefits.
The SEC also wants boards of directors to state the monetary value of stock option grants given to top executives, and all of this must be explained in "plain English" in proxy statements on an annual basis.
David Yermack, professor of finance at NYU Stern School of Business, believes that if the rule does come into effect, it will not have much of an impact on executive pay.