Compensation Risk Disclosure – What are Companies Doing?

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The topic of risk has taken center stage this year and, partly in response, new SEC regulations require companies to disclose whether their compensation programs create risks that are “reasonably likely to have a material adverse effect” on the company. As a new requirement this year, there was no precedent on which companies could rely to develop their disclosure. This article captures the risk disclosure practices from recent filings for over 200 companies in the S&P 500.