CFA unit calls SEC for tighter exec-pay rules
USA’s CFA Institute Centre for Financial Market Integrity is calling for tightening of executive-pay reporting requirements
Financial analysts of USA’s
CFA Institute Centre for
Financial Market Integrity, is calling on the
Securities and Exchange Commission (SEC) to tighten
executive-pay reporting requirements in 10 areas.
In its initial studies of the compensation disclosure rules implemented by
the SEC last year, the CFA Institute’s Centre for Financial Market Integrity was
one of many parties dissatisfied with the new rules and after analysing how
companies applied the new rules during the year, it has called for SEC action.
In a letter to John White, director of the SEC’s division of corporation
finance, the association of more than 92,500 financial analysts and other
professionals made 10 recommendations, saying they were ‘highly disappointed in
the inconsistent and overly complex implementation of the rules exhibited by
many companies’.
The CFA unit said companies were using ‘endless and complex legal
boiler-plate’ and avoiding full disclosure ‘by inappropriate claims that
compensation metrics are proprietary’.