As CFOs tussle this proxy season with the complexities of the Securities and Exchange Commissions new disclosure rules for executive pay, Moody’s Investors Service is coming out with a user’s guide to help shareholders benefit from the disclosures.
By calling for more information from companies, the SEC rules reveal “the way performance incentives influence management behavior and retention of top-level executive talent,” said Mark Watson, managing director of the rating service’s Corporate Governance Group and a co-author guide. “We believe compensation is a determinant of management behavior that indirectly affects credit quality.”