SEC amends new executive compensation disclosure rules, effective immediately

The Securities and Exchange Commission on December 22, 2006, adopted an amendment, in the form of an interim final rule, to the executive and director compensation disclosure rules adopted on July 26, 2006. The Amendment changes how companies must report stock and option awards in the Summary Compensation Table, the related Grants of Plan-Based Awards Table, and the Director Compensation Table by conforming the timing of the disclosure of these awards to the reporting practices for financial statements under the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R). Since the SEC issued the Amendment as an interim final rule, it is effective immediately upon publication in the Federal Register and therefore will be in effect for the 2007 proxy season. However, the SEC is soliciting comments for a 30-day period following publication and will make further changes to the Amendment if it deems it necessary.