The Securities and Exchange Commission is adopting amendments to the disclosure requirements for executive and director compensation, related-person transactions, director independence, and other corporate governance matters and security ownership of officers and directors. Though directed at publicly owned companies, many such requirements become the standard against which not-for-profit organizations are measured. The amendments will make proxy and information statements, reports, and registration statements easier to understand and will provide investors with a clearer picture of the compensation earned by a company’s highest-paid officers and directors. In addition, the amended requirements will provide better information about key financial relationships among companies and their executive officers, directors, significant shareholders, and their respective immediate family members.
