Securities regulators want publicly traded companies to make it easier for shareholders to determine whether top executives’ compensation is aligned with the firm’s financial performance, the Wall Street Journal reported today. The Securities and Exchange Commission today is set to propose long-awaited rules that would force thousands of companies to tell investors how the pay of top management tracked the firm’s financial results. The proposal, a requirement of the 2010 Dodd-Frank financial law, marks the latest attempt to strengthen investors’ ability to understand — and challenge — companies over their executive-pay practices. The SEC has previously greenlighted so-called “say-on-pay” votes that require companies to put executive-compensation packages up to a nonbinding shareholder vote at least once every three years.
