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Offices in Houston, Dallas, and Denver serving surrounding states.

Disclosure Requirements, SEC Compliance & Creating Effective Disclosures

The compensation disclosure consultants at Longnecker & Associates help company leadership report effective executive compensation disclosures through comprehensive advisory, disclosure review, and annual disclosure analysis. Headquartered in Houston, Texas, we offer consulting services throughout the Southwestern United States. Contact L&A to see how we can help ensure your disclosure statements align with the SEC’s guidelines and requirements.

The SEC requires public companies to clearly and concisely disclose compensation paid to CEOs and other high-ranking executives in their organizations. This information is typically found in the company’s annual proxy statement, the annual report on Form 10-K, and in filed registration statements for public sales of securities.

The three segments of executive compensation disclosures that our consulting firm highly recommends advisory services for include:

  1. Executive Compensation Proxy Statement
  2. Summary Compensation Table
  3. Compensations Discussion & Analysis »

Hiring third-party executive comp consultants like L&A means no conflict of interest, and more in-depth reporting and data analysis. We can help construct more effective, SEC compliant compensation disclosures.

A company’s proxy statement contains the most comprehensive data regarding executive pay. In the proxy statement, companies are required to disclose:

These disclosures are included succinctly in the Summary Compensation Table and provide a complete overview of a company’s compensation practices in one place. The summary compensation is required by the SEC to serve as the main executive comp report index.

The CD&A (Compensation Discussion & Analysis) section of a proxy statement explains and support the Summary Compensation Table. It contains a more in-depth report explaining all the components of the organization’s executive compensation programs. In addition to disclosure advisory, we also provide CD&A consulting services for public companies.

Although this isn’t part of the executive compensation disclosures, it’s important to note the SEC’s amendment to Regulation S-K now requires public companies to disclose information regarding their human capital resources. In its first year of disclosures, the most commonly disclosed category focused on employee demographics. The SEC is looking for more quantitative, enhanced data in areas such as workforce turnover and retention, employee engagement and training, compensation, benefits, employee demographics including diversity, equity and inclusion, and health and safety. As a new requirement in its early years of disclosure, the data companies are presenting is expected to evolve and be refined over time, but the above-mentioned topics are the current areas of most interest to investors and shareholders.

See Also: SEC’s New Rule On Human Capital Disclosures »

The compensation consulting experts at L&A are here to assist you with every aspect of your Proxy Statement, whether it be CEO pay ratio calculation, CD&A disclosures and everything in between. We can ensure your statement meets all SEC requirements and is an accurate representation of your company’s compensation practices.


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11011 Jones Road, Suite 200
Houston, TX 77070

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