ICI Applauds Efforts to Improve Public Company Information About Executive, Director Compensation

Washington, DC, April 11, 2006 - An SEC proposal to require public companies to provide detailed disclosure of an executive's pay package will significantly improve the ability of funds and other investors to evaluate whether the interests of a company's key policymakers are aligned with those of the company's shareholders, according to a recent ICI comment letter.

Background
In February 2006, the SEC proposed amendments to the disclosure requirements for executive and director compensation, related party transactions, director independence, and other corporate governance matters and security ownership of officers and directors. The amendments were designed to make proxy statements, reports, and registration statements easier to understand and provide investors, including investment companies, with a clearer picture of the compensation structure for the company's primary executive officer, principal financial officer, and highest paid executive officers along with members of its board of directors.

The amendments would apply to disclosure in proxy and information statements, periodic reports, current reports, and other filings under the Securities Exchange Act of 1934

ICI Position
In its recent comment letter, ICI states that investment companies welcome greater and more meaningful disclosure about executive pay packages. The Institute emphasizes that this information is important to investors because it focuses on the compensation paid to the individuals who are the company's decision makers. ICI also strongly supports the Commission's efforts to explore how the Internet can transform the delivery of information to investors and to the marketplace at large.

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