febrero 01 2022

SEC Reopens Pay Versus Performance Comment Period

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On January 27, 2022, the US Securities and Exchange Commission (SEC) voted to reopen the comment period on the pay versus performance rule that it proposed in 2015 (2015 Proposal). The proposed rule being contemplated would require SEC reporting companies to make expanded disclosure of the relationship between executive pay and a company’s financial performance. The original comment period on the 2015 Proposal ended on July 6, 2015. Interested parties may submit comments on any aspect of the 2015 Proposal, as well as on the additional requests for comments raised in the new proposing release on the reopening of the comment period (Reopening Release). The new comment period closes 30 days after publication of the Reopening Release in the Federal Register. This Legal Update further discusses the additional disclosures suggested by the Reopening Release, requests for comment and practical considerations.

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