A number of high-profile CEOs must not have provided enough information on their compensation packages. The SEC is sending them letters asking for a little more detail. The agency has already sent out about 300 letters.
According to The Wall Street Journal, the heads of very large companies, including GE (NYSE: GE) and Coca-Cola (NYSE: KO) are being asked to provide more information about how they are paid [subscription required].
Among the things that interest the SEC is how pay consultants make calculations for corporate boards. The Journal quotes the SEC's director of corporation finance, John White, saying, "We're seeing a lot of really vague disclosure" about individual performance goals and targets.
The issue can't really be that hard to resolve, especially at very big companies. They know full well how their CEO's pay is set, who is involved, who is consulted from outside the company, and what the final comp numbers are. It is not rocket science.
It is, however, another area of friction between the SEC and big companies.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
9-02-2007 @ 7:49PM
robin said...
I would like the SEC to look into the monies that were given to the CEO Chad Dreier of The Ryland Group in California. Mr. Dreir knew that his companies stock was down 24% the biggest decline in 10 years.
Knowing that he would know ahead of time how the housing market would do going forward in 2007 the board should have never paid him $31.4 millinon in 2006. This is sick. and has to stop big time