Coordinating with PCAOB Compels August Adoption for Exec Comp Rules

Last week the Wall Street Journal reported that the SEC has asked the PCAOB to hold off on issuing guidance on the back dating of stock options until the Commission can address the issue of the back dating of options in its soon-to-be-adopted executive compensation disclosure rules. The PCAOB is reportedly not happy about waiting to coordinate with the SEC, but will hold off as requested. It seems to me that the fact that the PCAOB will now delay its guidance on the back dating of options in order to accommodate the SEC's rulemaking timetable increases the pressure on the Commission to adopt the executive compensation rules sooner rather than later. And, indeed, an SEC spokeman is quoted as saying that the Commission expects to adopt the rules in August. So, it looks more and more as if we will have a new executive compensation disclosure regime adopted by Labor Day.