SEC Adopts Sweeping Revisions to Executive and Director Compensation and Related Party Transaction Disclosure Rules

On July 26, 2006, the Securities and Exchange Commission adopted rules that significantly modify the current disclosure requirements for executive and director compensation, related party transactions and corporate governance matters.  These rules are aimed at providing investors with a clearer and more complete picture of compensation to executive officers and directors and better information regarding relationships among companies and their executive officers, directors and significant shareholders.  This alert discusses these changes and their effects.