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SEC issues guidance on executive compensation

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SEC

(Reuters) – The U.S. Securities and Exchange Commission on Monday issued guidance to listed companies around how to properly recognize and disclose share-based compensation arrangements made to executives ahead of company earnings and other releases.

The regulators said its new guidance spells out how companies must consider the impact such “spring-loaded awards” would have on market-moving releases.

"Companies should not grant spring-loaded awards under any mistaken belief that they do not have to reflect any of the additional value conveyed to the recipients from the anticipated announcement of material information when recognizing compensation cost for the awards," the agency said in staff guidance.

 

 

 

 

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