Proxy Reporting Law and Legal Definition

Proxy reporting is an SEC requirement for public corporations to reveal the compensation (in a summary compensation table) of the five highest paid executives. Since 1992, the Security Exchange Commission (SEC) has required public corporations to disclose the compensation of top executives.

Securities laws require disclosure of information about Directors that many people would prefer remain private. Most public information about Directors is disclosed in proxy statements mailed each year to all the shareholders of the company. The SEC now makes publicly traded corporations' proxy data available online via the Internet. At the same time, the IRS releases Form 990 for non-profit organizations that report the pay of the top five paid executives.