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SEC Final Share Repurchase Disclosure Rules Less Burdensome Than Expected

On May 3, 2023, the Securities and Exchange Commission (SEC) voted at an open meeting to adopt final rules to require enhanced disclosure about issuer share repurchases under the Securities Exchange Act of 1934, as amended....more

SEC adopts “better-than-it-might-have-been” final rules for stock buyback disclosure

At an open meeting yesterday, the SEC voted three to two to adopt a proposal intended to modernize and improve disclosure regarding company stock repurchases. Issuers have something to be relieved about and something to be...more

How are companies reacting to anti-ESG efforts?

It’s not just Mickey Mouse that’s feeling the heat from anti-ESG efforts lately. Reuters reports that, so far this year, legislators have filed about 99 so-called “ESG backlash” bills compared with only 39 in 2022; as of...more

What we need to know about corporate governance—but don’t

In this paper, Seven Gaping Holes in Our Knowledge of Corporate Governance, from the Rock Center for Corporate Governance at Stanford, the authors observe that it “is extremely difficult to produce high-quality, fundamental...more

Is greenwashing running rampant?

According to a recent survey discussed in Global Executives Say Greenwashing Remains Rife, in the WSJ, executives think greenwashing is widespread: almost “three-quarters of executives said most organizations in their...more

Audit committee oversight of non-GAAP financial measures

According to audit firm PwC, non-GAAP financial measures play an important role in financial reporting, “showing a view of the company’s financial or operational results to supplement what is captured in the financial...more

Weaponization of the SEC? The House questions the SEC Chair

Will “weaponization” be Merriam-Webster’s word of the year? On Wednesday, SEC Chair Gary Gensler testified to the House Subcommittee on Financial Services and General Government on the topic of SEC appropriations. The SEC...more

Sustainability reports—not a liability-free zone

In April of last year, as described in this press release, the SEC filed a complaint against Vale S.A., a publicly traded (NYSE) Brazilian mining company and one of the world’s largest iron ore producers, charging that it...more

What have studies shown so far about PvP disclosure?

In August last year—12 years after the Dodd-Frank mandate— the SEC finally adopted a new rule that requires disclosure of information reflecting the relationship between executive compensation actually paid by a company and...more

Corp Fin posts update to tender offer CDIs

Corp Fin has posted an update to the CDIs related to the tender offer rules and schedules. Below are brief summaries. Section 101. General Questions - Tender offers may be subject only to conditions based on objective...more

SEC charges DXC with misleading non-GAAP disclosures and absence of non-GAAP disclosure controls

The SEC has announced settled charges against DXC Technology Company, a multi-national information technology company, for making misleading disclosures about its non-GAAP financial performance in multiple reporting periods...more

Ransomware attack—SEC charges misleading disclosures and disclosure control failure—again!

Last week, the SEC announced settled charges against Blackbaud, Inc., a provider of donor data management software to non-profit organizations, for misleading disclosures and disclosure control failures. According to the SEC,...more

Be on the alert for California’s Climate Corporate Data Accountability bill

Print Friendly, PDF & EmailPrint If you’re waiting with bated breath to find out what the SEC has in store for public companies in its final version of its climate disclosure regulations (see this PubCo post, this PubCo post...more

Did the SEC’s rule changes succeed in transforming the risk factors section? What about climate risk?

Remember back in 2020, when the SEC adopted major amendments to Reg S-K designed to modernize the descriptions of business, legal proceedings and risk factors? You might recall that the SEC had long grumbled about “the...more

Corp Fin posts a slew of new CDIs on pay versus performance

On Friday afternoon, Corp Fin posted a slew of new CDIs—15 in total—regarding the new pay-versus-performance rule. You may recall that, in August last year, the SEC finally adopted a new rule that will require disclosure of...more

SEC floats dialing back climate disclosure rules

The SEC has apparently let it be known—or perhaps a few reporters are especially intrepid—that it may well pare down and loosen up some of its proposed rules on climate disclosure. In this article in Politico and this...more

Corp Fin issues new CDIs regarding the clawback rules

In October last year, the SEC adopted a new clawback rule, Exchange Act Rule 10D-1, which directed the national securities exchanges to establish listing standards requiring listed issuers to adopt and comply with a clawback...more

“Diversity washing” is the new greenwashing

Is greenwashing old news? The latest component of ESG to be subject to a good scrubbing is diversity: specifically, “diversity washing.” What’s that? According to this paper authored by academics from several institutions,...more

Renee Jones to leave SEC; Erik Gerding to be named Corp Fin Director

On Friday, the SEC announced the departure of Renee Jones as head of Corp Fin. She has been Director of Corp Fin since June 2021 and will be returning to her position on the faculty of Boston College Law School. In her...more

SEC settles charges with McDonald’s and former CEO over deficient disclosures; two commissioners dissent

Inappropriate relationships with employees have landed a number of CEOs and other executives in hot water in the last few years, especially as the MeToo movement gained momentum. But these aren’t necessarily just employment...more

SEC crams much into packed Fall 2022 agenda

The SEC’s Fall 2022 Reg-Flex Agenda—according to the preamble, compiled as of October 6, 2022, reflecting “only the priorities of the Chair”—has just been posted, and it looks like the SEC will have another frenetic year...more

Will companies need to provide more detailed country-by-country tax disclosure?

The topic of taxes—corporate, presidential and otherwise—seems to be trending these days, with calls for greater transparency coming from investors, analysts and others, including speakers at the SEC’s Investor Advisory...more

SEC adopts new rules on 10b5-1 plans [UPDATED]

[This post revises and updates my earlier post primarily to provide a more detailed discussion of the contents of the adopting release.] - At an open meeting in December last year—happy new year!—the SEC voted to adopt...more

Corp Fin urges companies to amp up disclosure on impact of crypto market developments

Last week, Corp Fin posted another sample comment letter—this one urging affected companies to provide “specific, tailored disclosure” about the “disruption” in the crypto markets and collateral events, the “company’s...more

SEC reopens comment period (again) for proposal on stock buyback disclosure

Yesterday, the SEC announced that it was reopening (again) the public comment period for its proposed rule on stock buyback disclosure modernization, a rule proposed at the end of 2021. (Remember that the comment period for...more

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