The News: Widening Pay Disclosure
The SEC is the first agency out of the starting gate in Washington's race to reshape non-executive compensation practices. It's preparing a formal proposal that would require companies to expand disclosure of compensation deals, "in general terms," beyond the top five executives.
According to The Wall Street Journal, companies wouldn't have to report actual pay numbers for star traders and other non-executives. But they would have to describe such employees' compensation plans, as well as disclose the "overall design" of the company's pay structure, and how compensation is tied to long-run performance of employees.
It all sounds extremely vague, but ominous nonetheless. Might such rules become one more nail in the coffin of American firms' competitiveness, if they're forced to reveal information that could help foreign banks figure out just how much they need dangle to poach a rainmaker?
Back in 2006, the SEC tried to require firms to disclose how much they paid star non-executives. That plan died amid widespread industry opposition. I'd guess the agency's odds of getting its plans approved are much better given today's climate.
SEC Ready to Require More Pay Disclosures [WSJ]
CFA exams are worth the pain! [Globe and Mail]
A peer-reviewed study finds CFA charterholders issue timelier forecasts than non-charterholders and their picks have greater market impact, after controlling for accuracy and other factors. Interestingly, the first two readers posting comments below that Globe and Mail report showcase the same "world is flat!" ideology we're well acquainted with from responses to many past eFinancialCareers News stories about the CFA program.
Bring Passion to Work [WSJ]
Jordan Kimmel Joins National Securities as Market Strategist [National Holdings Corporation, via BW]
Leerink Swann Appoints Brent Clough as Senior Managing Director, Head of MEDACorp [Leerink Swann, via BW]
Edward Nusbaum Named CEO of Grant Thornton International [Grant Thornton, via BW]