In supporting the move, Democratic SEC Commissioner Luis Aguilar said there have been too many instances where managers have received outsized compensation even when companies experience large losses and shareholders suffered.

In opposition, Republican Commissioner Daniel Gallagher called the rules another intrusion into the realm of corporate governance. He added the move places a great emphasis on short-term performance.

Gallagher said retail investors are likely to use the enhanced disclosures the most since institutional investors have access to more complicated performance and executive pay calculations.

The other Republican commissioner, Michael Piwowar, objected to the proposal because it promotes a one-size-fits-all measure of corporate performance. “Trying to limit executive compensation through rulemaking has a history of backfiring,” he said.

The public officially will have nearly two months to comment on the rules when they are published in the Federal Register in the next few days. However, the regulator regularly accepts submissions after the formal deadline.
 

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