Companies must provide additional, clarified information on the pay and perks handed down to their executives and directors as part of a new set of regulations approved on Wednesday by the Securities and Exchange Commission (SEC), Reuters reports.
The SEC voted 5-0 to adopt the new rules, according to Reuters.
Under the new regulations, firms will need to be more open with regulators regarding their executive stock-option grant procedures, though the rules don’t identify any particular policy as better than any other, Reuters reports.
The new rules come amid a stock-options backdating scandal that already has 80 or so firms—many of them technology companies—under investigation by the SEC.
Related Links:
Three Ex-Brocade Execs Charged in Stock Options Probe
Stock-Option Grant Task Force Launched by U.S. Attorney
- Rambus to Restate Results Amid Options Probe
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