SEC amends executive compensation disclosures
29 Dec 2006
The US Securities and Exchange Commission has amended its executive and director compensation disclosure rules to more closely conform the reporting of stock and option awards to FASB Statement No. 123 (revised 2004) Share-Based Payment.
FAS 123R is similar to IFRS 2 Share-based Payment. The amendment modifies rules that were adopted in July 2006. The July rule had required a company to include the entire fair value of stock option grants in the SEC's Summary Compensation Table and the Director Compensation Table in the period in which the options are granted. The revised rule spreads the fair value in those Compensation Tables over the same periods as the company recognises options expense in its financial statements under FAS 123R. Click for SEC Press Release (PDF 66k).
