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Katie Couric Clause

What is 'Katie Couric Clause'

A slang term for a controversial proposed clause from a Securities and Exchange Commission (SEC) rule (formally known as the Executive Compensation and Related Party Disclosure). This clause, if implemented, would require publicly-traded companies to disclose not only the salaries of their top five executives, but also those of top earning non-executives, including actors, directors and TV news anchors.

The term refers to former "Today Show" host Katie Couric, who became CBS's highest paid newscaster in April 2006, with a reported salary of US $15 million over five years.

As of July 26, 2006 the SEC decided not to implement this specific clause, but did agree that rules regarding highly compensated non-executives merit a subsequent look.

Explaining 'Katie Couric Clause'

Many major media companies, such as CBS, NBC and the Walt Disney Co., opposed the SEC's controversial proposal. Media giants are often reluctant to disclose detailed compensation information, which might invade the privacy of its employees and also expose proprietary information that may make it easier for key employees to be headhunted. While the employees in question would not have to be named, many believe that it would not be hard to attach a name to the details.

Current SEC rules demand that salaries of the top five executives in publicly-traded companies to be disclosed. If this new rule is adopted, companies would have to disclose the overall compensation of up to three non-executive employees whose total compensation exceeds that of any of its top five managers. Supporters of this proposal say this rule would create greater transparency and give investors increased access to information, which should make for better-informed decisions.


Further Reading


Who Killed Katie Couric-and Others Tales from the World of Executive Compensation Reform
heinonline.org [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …

Is it time to wind up the Securities Act of 1933Is it time to wind up the Securities Act of 1933
heinonline.org [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …

How Security Threat Discourse Can Precipitate a Press Clause Death SpiralHow Security Threat Discourse Can Precipitate a Press Clause Death Spiral
heinonline.org [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …

Executive Compensation in Germany and the US Compared to French LegislationExecutive Compensation in Germany and the US Compared to French Legislation
papers.ssrn.com [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …

The Resistible Rise of Sarah Palin: Continuity and Paradox in the American Right WingThe Resistible Rise of Sarah Palin: Continuity and Paradox in the American Right Wing
onlinelibrary.wiley.com [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …

'Waiting for Superman'to save black people: racial representation and the official antiracism of neoliberal school reform'Waiting for Superman'to save black people: racial representation and the official antiracism of neoliberal school reform
www.tandfonline.com [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …

Party reputations, journalistic expectations: How issue ownership influences election newsParty reputations, journalistic expectations: How issue ownership influences election news
www.tandfonline.com [PDF]
… stock price was lower"); see also MP Narayanan et al., The Economic Impact of … a critical resource for funding US businesses and thus are vital to the American economy … not technically executive officers.18 That provision became known as the Katie Couric Clause because it …



Q&A About Katie Couric Clause


Where can you find the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Congress.gov.

What is the purpose of this article?

This article is about Katie Couric Clause.

What does this clause propose?

It proposes that companies must disclose compensation information about top earning non-executive employees such as actors, directors and TV news anchors.

Who is Katie Couric?

Former "Today Show" host Katie Couric. She became CBS's highest paid newscaster in April 26 with a reported salary of US 15 million over five years.

Where can you find information on executive compensation and related person disclosure?

SEC.gov.

What is the Katie Couric Clause?

The Katie Couric Clause is a slang term for a controversial proposed clause from a Securities and Exchange Commission (SEC) rule (formally known as the Executive Compensation and Related Party Disclosure). This clause, if implemented, would require publicly-traded companies to disclose not only the salaries of their top five executives, but also those of top earning non-executives, including actors, directors and TV news anchors.

Why do some major media companies oppose it?

Media giants are often reluctant to disclose detailed compensation information which might invade the privacy of its employees and also expose proprietary information that may make it easier for key employees to be headhunted. While the employees in question would not have to be named many believe that it would not be hard to attach a name to the details.

What are some examples where companies may need to disclose their pay ratios?

Companies that have been publicly traded for at least one year as well as companies with more than 100 employees worldwide are subject to Section 953(b)’s requirements regarding public disclosure of their CEO’s total annual compensation compared

How does current SEC rules work regarding executive pay disclosure?

Current SEC rules demand that salaries of the top five executives in publicly traded companies be disclosed . If this new rule is adopted , companies would have to disclose overall compensation for up to three non - executive employees whose total compensation exceeds that of any one of its top five managers . Supporters say this rule will create greater transparency and give investors increased access to information , which should make for better informed decisions .