The U.S. Securities and Exchange Commission has forwarded a proposal to overhaul executive compensation disclosure rules to the White House's Office of Management and Budget for review.
The plan, designated as economically significant and deregulatory under the Dodd-Frank Act, would require a regulatory flexibility analysis for small businesses. It targets Item 402 of Regulation S-K, which has governed executive pay disclosures since 1992.
Public companies currently must annually disclose compensation details for top executives, including the CEO, CFO, and the three highest-paid employees. The rules also mandate explanations of how pay decisions are made and the linkage between pay and performance.
The SEC sent the proposal to the OMB on Wednesday, and the document appeared on the agency's website the following day. According to the agency's regulatory agenda, a notice of proposed rulemaking is scheduled for October 2026.
SEC Chair Paul Atkins has emphasized reforming the agency's disclosure framework, with a spokesman stating in an email to Bloomberg that his priorities include providing 'the minimum effective dose of regulation with materiality as its North Star.'
