SEC takes comments on pay-for-performance rules

The SEC has reopened its comment period for proposed rules under the Dodd-Frank Act, which require disclosure of information about the relationship between the executive compensation a company has paid and its financial performance.

SEC Chairman Gary Gensler said the rule would enhance the transparency and quality of executive compensation disclosure.

He said the Commission has “long recognized” how valuable executive compensation information is for investors.

“In this reopening release, we consider whether additional performance measures would better reflect Congress’ intent in the Dodd-Frank Act and provide shareholders with the information they need to evaluate a company’s executive compensation policies. “, Gensler said, according to the statement.

Gensler adds that the SEC proposed rules in 2015 to implement the Dodd-Frank Act’s “pay for performance” requirement. The new reopening is due to developments since then regarding executive compensation platforms.

The release says the new comment period will allow people to submit more comments, especially those that respond to the changes mentioned above. The release says the comment period will be open for 30 days after the release is published in the Federal Register.

PYMNTS recently reported that the SEC is also cracking down more on crypto firms more broadly, with ongoing investigations into companies such as Gemini Trust Co., Voyager Digital, and Celsius Network, in addition to Coinbase.

See more: SEC campaign against crypto lending extends beyond Coinbase

Coinbase had announced a Coinbase Lend product that claimed to offer a 4% annual percentage return, but it was pulled after the threat of a lawsuit.

Coinbase said at the time that several other companies were already offering a lending product, and “by preventing Coinbase from launching the same thing that other companies already have live, they’re creating an unfair market.”

Coinbase CEO Brian Armstrong accused the SEC of “really sketchy behavior” on the matter, accusing it of not telling Coinbase why it was threatening the app.

In response, the SEC declared Coinbase Lend to be a security, although that response also lacked an explanation.

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