November 27, 2018
The SEC May Rethink the ’06 Pay Rule Changes (for Smaller Cos)!
– Broc Romanek
As I blogged yesterday over on TheCorporateCounsel.net, the SEC recently published a larger list than usual to be reviewed last week as part of the SEC’s annual exercise – as required under the Regulatory Flexibility Act – to review how the agency’s rules are faring for smaller reporting companies. This year’s list boasts 43 rules (compare that to 2004; only 7 rules). Like in prior years, the rules listed for review aren’t limited to rules that affect small companies. And notably, the list doesn’t include the elimination of quarterly reports entirely for smaller companies – which I do think will eventually be proposed based upon comments made by Corp Fin Bill Hinman at an ABA meeting a few weeks ago.
What is the “biggie” on this list of rules to be reviewed? The executive pay & related-party disclosures rule amendments of 2006 (which was a huge overhaul for those old enough to remember) – see pages 5-6 of the list…and see the rest of my commentary on this development in this blog…