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SEC Adopts "Pay Versus Performance" Disclosure Rule

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On August 25, 2022, the Securities and Exchange Commission (the “SEC”) adopted a rule that requires public companies to provide new disclosures regarding the relationship between executive compensation and the performance of the company. The new rule will require a table showing the compensation actually paid to the principal executive officer (“PEO”), the average compensation actually paid to other named executive officers (“NEOs”) and several measures of the company’s financial performance, in each case over a five-year period. The new rule, which was first proposed in 2015, implements Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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