The federal securities laws require clear, concise disclosure about compensation paid to CEOs, CFOs, and certain other high-ranking executive officers of public companies.<\/p>\n
Rules for executive compensation are governed by the federal securities laws. Several types of documents that a company must file regarding their executive compensation policies and practices should be organized within a company\u2019s proxy statement, annual report on Form 10-K, within registration statements filed by the company established to register securities for sale to the public, and also should be contained within the company\u2019s current report on Form 8-K.<\/p>\n
In the annual proxy statement, companies must disclose information revealing the amount and type of compensation paid to its chief executive officer and the three other most highly compensated executive officers. Companies must also disclose the criteria used in reaching executive compensation decisions and the type of relationship existing between the firm\u2019s executive compensation practices and company performance.<\/p>\n