SEC Proposes Executive and Director Compensation Disclosure Reforms

Washington D.C., Nov. 13, 2026 — The Securities and Exchange Commission today proposed rule amendments to make its executive and director compensation disclosure requirements more principles-based and materiality-driven, providing investors with clearer, more concise, and less complex disclosures. The proposal follows the Commission’s review of its executive and director compensation disclosure requirements, including a request for public comment and a roundtable discussion with representatives from public companies, investors, and other experts in this field. This proposal builds on Chairman Atkins’ efforts to reduce friction for companies looking to join and remain in our public markets.
The proposal would refocus these disclosures—last comprehensively reformed in 2006—on material information and improve investors’ ability to track equity awards through their lifecycle. The proposed amendments aim to reduce compliance burdens for registrants where there is not commensurate benefit for investors and would provide registrants with more flexibility to present their disclosures in a way that is consistent with how compensation programs are constructed today and better represents the intention of their boards of directors and compensation committees.
“Today, the Commission proposed amendments to its executive compensation disclosure requirements contained in Item 402 of Regulation S-K. These amendments reflect a comprehensive reform of Item 402 that, together with other previously proposed actions, are central tenets of my agenda and focus on transforming the SEC’s public company disclosure regime to one rooted in materiality,” said SEC Chairman Paul S. Atkins in a statement. “With the benefit of input from more than 80 comment letters received from investors, companies, and advisors in connection with the SEC’s roundtable on executive compensation in July 2025, today’s proposal aims to elicit more informative disclosure rooted in materiality.”
The proposed amendments to Item 402 of Regulation S-K would permit registrants to tailor disclosure in a way that provides greater transparency regarding the registrant’s compensation practices and is more efficient for investors to read and understand. In support of these goals, the proposed changes would, among other things:
The public comment period will remain open for 60 days following publication of the proposing release in the Federal Register.