New SEC Rules Require Enhanced Risk Management Disclosure

This week, the U.S. Securities and Exchange Commission ("SEC") issued new disclosure rules that will have a significant impact on corporate governance and risk management practices at all U.S. public companies.  The rules become effective February 28, 2010 and require enhanced public disclosure of the following:

• The relationship of a company's compensation policies and practices to risk management.


• The background and qualifications of directors and nominees.


• Legal actions involving a company's executive officers, directors and nominees.


• The consideration of diversity in the process by which candidates for director are considered for nomination.


• Board leadership structure and the board's role in risk oversight.


• Stock and option awards to company executives and directors.


• Potential conflicts of interests of compensation consultants.

For some companies, these new rules will have minimal impact based on their enhanced risk management practices.  However, for others, it may mean a great deal of work must be completed in the next several months.  If your company needs assistance implementing cost-effective, practical risk management solutions, email us at NavigateSuccessfully@WheelhouseAdvisors.com or visit www.WheelhouseAdvisors.com to learn more.