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Posted on 04/10/2006 3:31:21 AM PDT by abb
Media companies, worried that some of their most closely guarded Hollywood secrets could be exposed, are rallying to fight a proposed change to corporate-disclosure rules.
The proposed regulation, under consideration by the Securities and Exchange Commission, would require a corporation to publish the salary details of as many as three nonexecutive employees whose total compensation exceeds that of any of its top five officers. Companies currently have to disclose only the pay of the chief executive officer and the next four highest-paid officers.
The new rule, which the SEC is expected to decide on later this year, would apply to all listed companies but would likely have the most impact in industries such as media, financial services, technology and pharmaceuticals, in which star performers can earn more than CEOs.
Nowhere are stars with huge paychecks more plentiful than in entertainment. But despite the industry's reputation for flaunting wealth, detailed information on the compensation of a big-name entertainment figure is rare. In addition to a salary, top earners often receive bonuses, stock and perquisites -- extras that are usually protected by extensive confidentiality clauses in contracts.
The SEC says the proposed change was motivated by a desire to give shareholders more information about how corporate funds are being spent. The agency says it isn't requiring more detailed information about the employees, such as their names, because the workers in question don't have a "policy-making function." The SEC's deadline for public comment on the measure is today.
Viacom Inc., which owns the Paramount film studio, sees things differently; it plans to file a letter with the SEC arguing that the compensation information should be treated as a trade secret. The proposed rule "would likely impose significant additional costs and administrative burdens in order to achieve disclosure..."
(Excerpt) Read more at online.wsj.com ...
bttt
"All Corporations are EVIL," said Hollywood, "except Hollywood Corporations."
It's always amusing how the word "fair" morphs into different meanings depending on who wields its use....
Frankly this is actually quite a disturbing policy if they intend to release names along with compensation. Not only does it possibly put people at risk, but it puts companies at risk as the market price for their top execs is shown bare to their competition (think wall street).
Executives of publicly traded companies (CEO, COO, etc) already must disclose their compensation in the annual proxy statement. This news article refers to the stars who aren't executives but are highly compensated. Think Tom Cruise, Brad Pitt, etc...
IMHO, EVERYONES salary should be known. That way, the free market can work to ensure that everyone is paid fairly.
ping
Wonder if there have been some accounting shenanigans going on?
Ya think? LOL!!!
Well, daylight's the best disinfectant :)
Didn't slick willie exempt hollyweird from taxation on excess compensation?
IMHO, EVERYONES salary should be known. That way, the free market can work to ensure that everyone is paid fairly.
Well, how about starting with you? You can post it right here.
What you propose would insure that everyone could be paid less.
I think the big deal is -"compensation to a few individuals,
will change the profit/loss of the corporation"-
used to be the -CEO,CFO,Chairman,VP's etc.now you are looking
at specific individuals - because Hollyweird has been showing
such mega blockbusters-( Forrest Gump) showing a loss!
see the following ::http://www.sec.gov/spotlight/sarbanes-oxley.ht
Sarbanes Oxley is going to get them for non compliance of
standard accounting procedures.
I was thinking tax dodging... not that I'm a fan of the IRS, but if I have to pay, they should have to. Then maybe we'll all rise up together, hand in hand, like a communist Hollywood movie.
But Hollyweird leftists wouldn't stiff Big Government of all the taxes it needs to fund the nanny state...would they?
Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.
"It's always amusing how the word "fair" morphs into different meanings depending on who wields its use"
It all depends on whose "ox" is getting gored.
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