June 3, 2009

SEC To Propose Expansion Of Pay Disclosures.

The Wall Street Journal (6/3, Scannell) reports the SEC "plans to propose that companies disclose in general terms how they compensate lower-ranking employees, expanding disclosures for the first time beyond the executive suite." SEC Chairman Mary Schapiro said Tuesday during congressional testimony "that the rules could be taken up by the agency next month." The proposals would not "require companies to say how much they pay these star performers, but they would have to disclose in more-general terms how lower-ranking employees are paid, especially when it affects the company's overall risk management." The SEC is also expected to "seek information about the overall design of the company's pay structure and how compensation relates to an employee's performance over the long run."

        Former Federal Prosecutor Named To Run SEC In New York. The Wall Street Journal (6/3, Scannell) reports, "George Canellos, a former federal prosecutor, has been tapped to run the SEC's New York office, the first outsider in years to take the key post." Canellos "worked as a prosecutor in Manhattan with Robert Khuzami, the SEC's new enforcement chief." The two appointments are "part of SEC Chairman Mary Schapiro's effort to reinvigorate the agency following criticism that it was caught off-guard by the financial crisis and had been slow in bringing enforcement cases."