News Stay informed about the latest enterprise technology news and product updates.

SEC calls for more executive pay transparency; proposed law could allow hacked firms to keep mum

The Securities and Exchange Commission (SEC) is pushing to provide U.S. shareholders with better metrics to compare executive pay against company performance. In other GRC headlines from recent weeks: A new law moving through Congress could allow breached companies to keep intrusions under wraps; and the U.S. Justice Department plans to reveal details about secret phone tracking.

SEC votes on rules comparing executive pay and company performance

The SEC wants to give U.S. company shareholders more information on executive pay and company performance. The regulatory agency last week proposed new rules that would require companies to disclose the relationship between how their top executives are compensated and the companies’ financial returns. The rules, which would put into practice a requirement outlined in The Dodd-Frank Act, aim to provide greater transparency to the public and a better gauge for shareholders to compare pay and performance, according to the SEC’s press announcement.

The rules would also require companies to standardize how they report this information in their publicly filed annual proxy statements so that shareholders can better compare performance across various industries.

Some lawyers and compensation experts, however, view the new rules as unnecessary, reported The New York Times. Critics say that many corporations, especially banks, already compare executive compensation with performance in their proxy statements. Some also claim that the proposed rules intend to shame companies and their executives. “The real purpose of these rules was to embarrass corporate America,” Alan Johnson, managing director of New York consulting firm Johnson Associates, told the NYT.

Proposed law would let firms keep breaches under wraps

Proposals moving through both chambers of Congress would allow companies that have experienced a consumer data breach to withhold notifying customers if they believe that there’s no risk the breach would lead to serious identity theft or fraud. If there’s a reasonable chance a system intrusion could harm customers, however, companies will be required to quickly notify them.

If passed, the legislation would overrule existing state laws on notification, many of which require companies to inform customers of any unauthorized access of their personal data, according to The Wall Street Journal.

“Too much notification undercuts the value of useful notification,” a spokesman for Rep. Marsha Blackburn, a sponsor for one of the proposals, told the WSJ. The bill focuses on “what impacts consumers most, and that is identity theft and payment fraud,” the spokesman added.

This proposal comes at the heels of another bill making the rounds in Congress that has some privacy advocates up in arms. Last month, the House voted to pass cybersecurity legislation that would legally protect companies that share threat intelligence with the U.S. government.

U.S. Justice Department to divulge more on secret cellphone tracking

The U.S. Justice Department is pushing for more transparency over how secret cellphone tracking services are used. Justice officials told the WSJ that they have launched a review of how government agencies are deploying these technologies, which search for criminal suspects based on their cellphone location.

According to the WSJ, the FBI has been using the tracking devices for years without warrants. In recent months, they’ve started obtaining search warrants from judges to use the devices.

The announcement arrives in the midst of controversy over the Justice Department’s own use of such technology. For instance, some tracking devices are deployed in airplanes to scan the phones of thousands of U.S. citizens who aren’t targets of investigations, the WSJ reported last year. Furthermore, there were many occurrences in which law enforcement agencies within the Justice Department, such as the FBI and the Drug Enforcement Agency, did not obtain warrants before using these devices, according to the WSJ.