Voluntary Risk and Overall Compensation Disclosure


Summary

This template voluntary risk and overall compensation disclosure language may be included in the executive compensation section of a public company's annual proxy statement, information statement, or annual report on Form 10-K, as filed with the U.S. Securities and Exchange Commission (SEC). This template includes practical guidance and drafting notes. Item 402(s) (17 C.F.R. § 229.402) of Regulation S-K requires reporting companies, other than emerging growth companies and smaller reporting companies, to discuss their compensation policies and practices for their employees, as they relate to risk management practices and risk-taking incentives, if the risks arising from their compensation policies and practices are reasonably likely to have a material adverse effect on the company. Some companies choose to voluntarily disclose the role of their compensation policies and practices in risk management based on informal advice from the SEC and the recommendations of proxy advisory firms ...