At an open meeting on July 26, 2006, the Securities and Exchange Commission (“SEC”) approved major amendments to its rules for disclosure of executive compensation. The new rules are the SEC’s first major overhaul of compensation disclosure since 1992 and reflect the growing criticism that current disclosure has not accurately explained executive compensation practices of companies. After receiving a record breaking 20,000-plus comments to the January 27, 2006 proposal of these rules, the final rules were released by the SEC on August 11, 2006, substantially as proposed.
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