US Stocks | Wall Street regulator calls for shrinking exec pay disclosure

Fewer top corporate executives could be subject to extensive ​investor disclosures about their compensation under ​pending regulatory reforms, Wall Street's top regulator said Tuesday. The ​remarks from Paul Atkins, chair of the U.S. Securities and Exchange Commission, foreshadowed coming proposals aimed at substantially reducing the burden companies face in complying with regulations for ‌public companies, ⁠part ⁠of a general shift in the balance of power away from investors and back ​towards companies.

"I agree...that we should reconsider the number of executives for whom compensation information is ​provided," Atkins said, according to a copy of prepared remarks. In a regulatory agenda unveiled in September, the SEC said it planned to overhaul ​regulations on corporate disclosure. And in his remarks ⁠on Tuesday, ‌Atkins said possible changes included ways to simplify measures ​of executive ​pay versus performance and recategorizing some personal security as ⁠a necessity rather than an executive "perk."

Among other possible changes, ​Atkins also suggested narrowing the circumstances in which companies ​have to report transactions involving companies with ties to executives' families.


"The rule makes no distinction based on the closeness or continuity of a relationship," said Atkins. "Perhaps a more workable standard for 'immediate family members' is whether the executive has shared a Thanksgiving meal with them in the past year." Since ‌taking over the role in April, Atkins has laid out plans that embrace the cryptocurrency sector and while ​the White House, ​which has asserted ⁠direct control over the SEC, has also called for an end to quarterly reporting, opens new tab and reforms to shareholder disputes. With support from some ​corporate leaders, Atkins and other Republicans have taken aim at pay disclosure rules, including those put in place after the 2008 financial crisis, meant to give investors a clearer picture of managers' incentives. Democrats have argued for pay disclosures and limits they say are needed to reduce risky behavior.