Archive for August, 2015

Proforma or additional disclosure on Compensation (beyond what is mandatory)

In July 28th 2015, David F. Larcker, Brian Tayan, and Youfei xiao published an article on “Proforma Compensation. Useful insight or window dressing?”, as part of the Standford Closer Look Series, (1).

They argue every pro forma measure or disclosure may serve to mislead investors, or to better inform them about underlying and long-term trends, (and that can be said about financial or compensation information, for instance).


In the USA, compensation disclosure is regulated by the SEC, and is reported inside the proxy statement, in the Compensation Discussion & Analysis section. This happens also abroad. For instance, in Spain it is also regulated by law and the SEC equivalent, (the CNMV), and public companies need to have their Compensation report approved (non binding) by shareholders every year, and their Remuneration Policy every three years, (2). Read more…