CNBC's Pearson: New Exec Pay Rules In Effect
We've been talking all week about the big year end cash and stock bonuses Wall Street executive are getting--some of them topping $50 million. But starting today--everyone will be able to find out what other perks company execs are getting--like the use of a company jet. CNBC's Hampton Pearson on "Morning Call" had the details.
Pearson says the new exec pay disclosure--ordered by the Securities and Exchange Commission--is the biggest change in 25 years. The new ruling forces companies to show a public compensation table for their top 5 executives. The table will show such items as stock items and retirement packages. All of this will be available to company shareholders in proxy statements and on the company's Web site.
The SEC ordered the changes--after a lot of public outcry. Figures show that in 2005--exec pay was up 16% and in 2004--it was up 30%.