The Securities and Exchange Commission‘s proposal to require better disclosure on executive pay is not inspiring companies to change their compensation programs, according to consultant Watson Wyatt. The firm found that 70% of those polled say they have no plans to change their programs, while 9% said they would in response to the SEC proposals. In addition, 48% say they would not change their proxy disclosure procedures, while 23% responded that they would.
Watson Wyatt’s Ira Kay suggested that companies are “taking a wait-and-see approach to the proposed rules.” The Watson Wyatt survey reports that 82% felt that the SEC’s current compensation committee disclosure rules do not provide the information the agency is looking for, and 61% believe the rules will not improve corporate governance.