SEC Proposes Increasing Disclosure of Executive Compensation

Business Wire, Jan 17, 2006

NEW YORK -- David Yermack, professor of finance at New York University Stern School of Business and an expert on executive compensation, is available to comment on the significance of this SEC reform.

Executive compensation abuse continues to make headlines, but will today's U.S. Securities and Exchange Commission proposal to increase disclosure of executive pay affect or change what CEOs are currently earning?

According to NYU Stern Professor David Yermack, this latest reform will most likely have little impact on CEO pay. A free market proponent, Professor Yermack does believe that further disclosure on this topic will result in increased market efficiencies, forcing Directors to "wake up" to what's really behind their executive contracts and subsequently defend or change them.

Professor Yermack is one of the first in his field to study CEO pensions. His research showing that CEO corporate jet use is associated with a significant decline in a firm's stock value generated widespread attention.

If you'd like to arrange an interview with Professor Yermack, please contact Jessica Neville (212-998-0666) or Lisette Zarnowski (212-998-4033), NYU Stern Office of Public Affairs.