Perquisites under the microscope

摘要

Beginning January 1, 2007, US registrants became subject to revised guidelines regarding the reporting of executive and director compensation. The Securities and Exchange Commission now requires in firms' annual filings (e.g. proxy statement, annual report, registration statement) a compensation discussion and analysis (CD&A) section, very much akin to the long-standing management discussion and analysis (MD&A) section. This CD&A section builds on the previously required compensation disclosure section which typically appeared in tabular form and includes narrative, "in plain English," of the principal executive and financial officers as well as the next three highest paid company officers' compensation packages all-inclusive. Importantly, this narrative is to include a description of the policies and procedures attendant with director compensation.