Disclosure rules may change

Thursday, Oct. 21, 2004 | 9:12 a.m.

The U.S. Securities and Exchange Commission staff may propose expanding disclosure rules on executive pay to cover lower-paid executives including general counsels, a commission official said.

U.S. companies must report in their proxy statements the compensation for the chief executive and the next four highest paid executives. The top lawyer and chief financial officer's pay only has to be disclosed when their compensation is among the top five.

"It is at least worth us considering whether the roles of particular officials, such as those, would merit them being selected for compensation disclosure even if they don't fall in the traditional 'top five' category." said Alan Beller, director of the SEC's division of corporation finance.

Investors are seeking more detail and wider disclosure of executive pay after Tyco International Ltd.'s former general counsel Mark Belnick received a $17 million bonus, and General Electric Co. failed to disclose perks provided to retired CEO Jack Welch, including an $11 million New York apartment, bodyguards and a leased Mercedes-Benz.