الكشف عن خيارات الأسهم

يقر المستخدم بأنه قد راجع اتفاقية المستخدم وسياسة الخصوصية التي تحكم هذا الموقع، وأن الاستخدام المستمر يشكل قبول الشروط والأحكام الواردة فيه. خصائص أمب مخاطر خيارات موحدة قبل شراء أو بيع خيار، يجب على المستثمرين قراءة نسخة من خصائص أمبير المخاطر من الخيارات الموحدة، والمعروف أيضا باسم وثيقة الكشف عن الخيارات (أود). وهو يفسر خصائص ومخاطر الخيارات المتداولة في البورصة. ويمكن أيضا الحصول على نسخ من هذه الوثيقة من الوسيط الخاص بك، من أي تبادل على الخيارات التي يتم تداولها، عن طريق وضع النظام على الانترنت. أو عن طريق الاتصال بمؤسسة المقاصة الخيارات مباشرة في 1 N. واكر الدكتور سويت 500، شيكاغو، إيل 60606. وجود مشكلة عرض أود نوصي بتحميل وتثبيت أحدث إصدار من أدوب أكروبات ريدر. الذي يتوفر كتنزيل مجاني. إذا استمرت المشاكل الخاصة بك قد ترغب في طلب نسخة مطبوعة أو الاتصال وسيط الخاص بك. طلب نسخة مطبوعة انقر هنا لوضع طلب للنسخة المطبوعة من وثيقة الكشف عن الخيارات. و أود هو فقط 0.45 بالإضافة إلى الشحن والمناولة. اسمحوا 8-10 أيام للتسليم. يناقش هذا الموقع خيارات التداول المتداولة الصادرة عن شركة المقاصة. ولا ينبغي تفسير أي بيان في هذا الموقع على أنه توصية لشراء أو بيع ضمان أو تقديم المشورة في مجال الاستثمار. الخيارات تنطوي على مخاطر وليست مناسبة لجميع المستثمرين. قبل شراء أو بيع خيار، يجب على الشخص الحصول على نسخة من خصائص وخيارات الخيارات الموحدة. يمكن الحصول على نسخ من هذه الوثيقة من الوسيط الخاص بك، من أي تبادل على الخيارات التي يتم تداولها أو عن طريق الاتصال شركة المقاصة الخيارات، واحد شمال واكر الدكتور سويت 500، شيكاغو، إيل 60606 (المستثمرين). 169 2017 شركة مقاصة الخيارات. جميع الحقوق محفوظة. سيو جوائز خيار الأسهم وتوقيت إفصاح الشركات الطوعية ديفيد أبودي a، رون كاسنيك b. . كلية الدراسات العليا في أندرسون، جامعة كاليفورنيا في لوس أنجلوس، لوس أنجلوس، كاليفورنيا 90095-1481، الولايات المتحدة الأمريكية b كلية الدراسات العليا لإدارة الأعمال، جامعة ستانفورد، ستانفورد، كا 94305-5015، الولايات المتحدة الأمريكية وردت في 3 ديسمبر 1998، متوفر على اإلنترنت 9 أكتوبر 2000 نحقق فيما إذا كان المديرون التنفيذيون يديرون توقيت إفصاحاتهم الطوعية حول جوائز خيارات األسهم. ونحن نخمن أن المديرين التنفيذيين إدارة المستثمرين إنفورسدرسكو التوقعات حول تواريخ الجائزة عن طريق تأخير الأخبار الجيدة والاندفاع إلى الأمام الأخبار السيئة. بالنسبة لعينة من 2،039 جائزة خيار الرئيس التنفيذي من قبل 572 شركة ذات جداول الجائزة الثابتة، فإننا توثق التغييرات في أسعار الأسهم وتوقعات أرباح المحللين حول جوائز الخيار التي تتفق مع التخمين لدينا. كما نقدم المزيد من الأدلة المباشرة على أساس توقعات الأرباح الإدارية الصادرة قبل تواريخ المنح. وتشير نتائجنا إلى أن المديرين التنفيذيين يتخذون قرارات الكشف الطوعي الانتهازية التي تعوض تعويض خيار الأسهم. جيل تصنيف الرئيس التنفيذي جوائز خيار الأسهم الإفصاح الطوعي ونحن نقدر التعليقات والاقتراحات المفيدة من المشاركين في ورشة العمل في عام 1998 مخيم ستانفورد المحاسبة الصيفية، 1999 مخيم دوكونك الخريف، 1999 الاجتماع السنوي جمعية المحاسبة الأمريكية، جامعة أريزونا، جامعة ولاية أريزونا، جامعة كولومبيا البريطانية ، جامعة كاليفورنيا في لوس أنجلوس، جامعة كولومبيا، جامعة ولاية جورجيا، جامعة ميشيغان، جامعة نيويورك، جامعة نورث وسترن، جامعة بوردو، جامعة روتشستر، جامعة تكساس في أوستن، جامعة واشنطن، وجامعة واشنطن، كيفن ميرفي ( الحكم)، وجيري زيمرمان (المحرر). ونحن نقدر أيضا المساعدة البحثية من هونغ كين شين. ديفيد أبودي يعترف بدعم مدرسة أندرسون في جامعة كاليفورنيا. رون كاسنيك يعترف بدعم مبادرة البحوث المالية، كلية الدراسات العليا في إدارة الأعمال، جامعة ستانفورد. كاتب المقابلة. الهاتف. 1-650-725-9740 فاكس: 1-650-725-6152 كوبيرايت كوبي 2000 إلزيفير سسينس بف جميع الحقوق محفوظة. القاعدة المالية: الإفصاح عن خطة تعويض حقوق الملكية المعلومات لجنة الأوراق المالية و الأوراق المالية 17 أجزاء كفر 228 و 229 و 240 و 249 رقم 33-8048، 34-45189 ملف رقم S7-04-01 الكشف عن خطة تعويض حقوق الملكية الوكالة: هيئة الأوراق المالية والبورصات. الإجراء: القواعد النهائية. ملخص: نحن نعتمد تعديلات على قانون سوق الأوراق المالية لسنة 1934 متطلبات الإفصاح المطبقة على التقارير السنوية المودعة في النموذجين 10-K و 10-كسب وإلى بيانات الوكيل والبيانات. وستعزز التعديالت اإلفصاح عن عدد الخيارات القائمة والمذكرات والحقوق الممنوحة من قبل المسجلين للمشاركين في خطط تعويض األسهم باإلضافة إلى عدد األوراق المالية المتبقية لإلصدار المستقبلي بموجب هذه الخطط. تتطلب التعديالت من المسجلين تقديم هذه المعلومات بشكل منفصل لخطط تعويض األسهم التي لم تتم الموافقة عليها من قبل أصحابها، وتقديم نسخ من هذه الخطط ما لم تكن غير ذات أهمية. التواريخ: تاريخ السريان: 1 فبراير 2002. تواريخ الامتثال: يجب على المسجلين الالتزام بمتطلبات الإفصاح الجديدة لتقاريرهم السنوية عن الاستمارات 10-K أو 10-كسب الواجب تقديمها للسنوات المالية التي تنتهي في أو بعد 15 مارس 2002 و والوكيل وبيانات البيانات لاجتماعات أو إجراءات من قبل أصحاب الأمن التي تحدث في أو بعد 15 يونيو 2002. يجوز للمسجلين طوعا الامتثال لمتطلبات الكشف الجديدة قبل تواريخ الامتثال. التعليقات: يجب تلقي التعليقات على مقتطفات المعلومات من المعلومات ضمن معنى قانون تخفيض الأوراق الورقية لعام 1995 بعد 30 يوما من نشرها في السجل الاتحادي. لمزيد من المعلومات، يرجى الاتصال ب: مارك أ. بورخيس، المستشار الخاص، مكتب وضع القواعد، شعبة تمويل المؤسسات، عن طريق الهاتف على الرقم 202 202-2102، أو كتابة في لجنة الأوراق المالية والبورصات، 450 الشارع الخامس نو، واشنطن العاصمة 20549. المعلومات التكميلية: نحن نعتمد تعديلات على البندين 201 1 و 601 2 من اللائحة التنظيمية سب 3 البنود 201 4 و 601 5 من اللائحة التنفيذية 6 و النموذج 10-K و 7 النموذج 10-كسب 8 و الجدول 14 أ 9 تحت الأوراق المالية قانون التبادل لعام 1934. 10 الجدول 14C 11 بموجب قانون الصرف يتأثر أيضا التعديلات. 12 أولا - مقدمة مع تزايد استخدام تعويضات رأس المال خلال العقد الماضي، كان لدى 13 مخاوف بشأن تأثيرها على المسجلين وأصحابها. 14 يمكن أن تمنح منح التعويض عن حقوق الملكية والجوائز إعادة توزيع كبيرة للملكية بين أصحاب الضمانات الحاليين والإدارة والموظفين. 15 لا تتطلب قواعدنا الحالية الإفصاح في مكان واحد من إجمالي عدد الأوراق المالية التي بقي المسجل متاحا للإصدار في إطار جميع خطط التعويض الأسهم. أيضا، لأنه قد يتم تنفيذ هذه الخطط دون موافقة أصحاب الأمن، فمن المحتمل أن المستثمرين قد لا تكون قادرة على تحديد الحجم الكلي لبرنامج تعويضات الأسهم المسجلين. في يناير 2001، اقترحنا تعديلات على قواعد الإفصاح عن تعويض الأسهم، حيث كان هدفنا تزويد المستثمرين بعرض أكثر قابلية للفهم لبرنامج تعويضات الأسهم المسجلين. تلقينا 31 رسالة تعليق ردا على المقترحات. 17 - وفي حين أيدت أغلبية المعلقين المقترحات، تساءل العديدون عن الحاجة إلى الكشف الذي كان، في رأيهم، مساويا إلى حد كبير للإفصاح المطلوب بالفعل في البيانات المالية المدققة للمسجلين. وبالإضافة إلى ذلك، قدم العديد من المعلقين الداعمين اقتراحات لتنقيح المقترحات لتحسين إنجاز هدف التأكد من أن جميع المعلومات المادية عن برنامج تعويضات الأسهم المسجلين تم الكشف عنها بشكل كامل وواضح. وقد أدخلنا عددا من التغييرات على المقترحات استجابة لهذه التعليقات. وتناقش هذه التغييرات في القسم الثاني من هذا الإصدار. ونتيجة لتعديلات اليوم، يجب على المسجلين تضمين جدول جديد في تقاريرهم السنوية عن النموذج 10-K، 18 وكذلك في بياناتهم بالوكالة 19 في السنوات التي يقدمون فيها خطة تعويض لإجراءات صاحب الضمان. یتطلب ھذا الجدول معلومات عن فئتین من خطط تعویض الأسھم: الخطط التي تمت الموافقة علیھا من قبل حاملي الأوراق المالیة والخطط التي لم تتم الموافقة علیھا من قبل حاملي الضمان. فيما يتعلق بكل فئة، يجب على المسجل الإفصاح عن عدد الأوراق المالية التي ستصدر عند ممارسة، ومتوسط ​​السعر المرجح للممارسة، من جميع الخيارات المعلقة، والمذكرات والحقوق، فضلا عن عدد الأوراق المالية المتبقية المتاحة للإصدار في المستقبل بموجب خطط تعويضات رأس المال للمسجلين. 20 ثانيا - مناقشة التعديلات أ. محتوى الإفصاح 1. الإفصاح المطلوب بموجب المقترحات الأصلية الموضحة في بيان الاقتراح، يتعين على المسجلين أن يكشفوا في شكل جداول عدة فئات من المعلومات عن خطط تعويضات الأسهم الخاصة بهم، بما في ذلك عدد الأوراق المالية المأذون بها للإصدار بموجب كل خطة ، وعدد الأوراق المالية المصدرة، بالإضافة إلى عدد الأوراق المالية التي ستصدر عند ممارسة الخيارات أو الأوامر أو الحقوق الممنوحة بموجب كل خطة خلال السنة المالية الماضية، وعدد الأوراق المالية التي ستصدر عند ممارسة الخيارات المعلقة، أو الضمانات الممنوحة بخلاف السنة المالية الماضية، وعدد الأوراق المالية المتبقية للإصدار المستقبلي في إطار كل خطة. وقد تطلبت المقترحات من المسجلين إدراج كل خطة على حدة في الجدول. كما طلبنا التعليق على ما إذا كان ينبغي إدراج أي فئات إضافية من المعلومات في الجدول. وردا على شواغل مفادها أن المقترحات ستكون مكلفة ومرهقة لتنفيذ وازدواجية بعض المعلومات المطلوبة في البيانات المالية للمسجلين، فقد أزلنا أول فئتين مقترحتين من الكشف. وقد أجرينا عددا من التغييرات الأخرى أيضا، بما في ذلك تغيير يسمح للمسجلين بتقديم المعلومات المطلوبة على أساس مجمع. وتناقش هذه التغييرات بالتفصيل أدناه. بالإضافة إلی التعلیقات التي توحي بأننا نخفف من الکشف المقترح، تلقینا أیضا تعلیقات أشارت إلی الحاجة إلی أنواع إضافیة من الإفصاح لم یتم اقتراحھا أصلا. على سبيل المثال، اقترح العديد من المعلقين أن نضيف عمودا إلى الجدول المقترح يوضح متوسط ​​سعر التمرين المرجح للخيارات المعلقة، والمذكرات والحقوق. (21) أكد هؤلاء المعلقون أن المستثمرين يحتاجون إلى هذه المعلومات لتقييم الأثر المخفف لبرنامج تعويضات مساهمي المسجلين. 22 ولتمكين المستثمرين من فهم التخفيف بشكل أفضل ولتعزيز وضوح المعلومات المتعلقة بسعر التمرين، أضفنا عمودا إلى الجدول يتطلب الإفصاح عن متوسط ​​سعر التمرين المرجح لجميع الخيارات التعويضية المعلقة والمذكرات والحقوق. 23 كما هو مطبق، تتطلب التعديلات من المسجل أن يقدم للمستثمرين إفصاحات الجدول التالية: خطة تعويض حقوق الملكية يجب على المسجلين المعلومات تقديم الإفصاح فيما يتعلق بأي خطة تعويض حقوق الملكية 24 في الواقع 25 اعتبارا من نهاية المسجلين آخر سنة مالية كاملة أن تنص على منح الأوراق المالية للمسجلين أو منح خيارات أو ضمانات أو حقوق شراء الأوراق المالية للمسجلين لموظفي المسجل أو الشركة الأم أو الشركات التابعة أو التابعة لها أو لأي شخص آخر. 26 كما يجب اإلفصاح عن ذلك بغض النظر عما إذا كانت األوراق المالية التي سيتم إصدارها بموجب خطة تعويض حقوق الملكية هي أوراق مالية مصرح بها ولكن غير مصدرة للمسجل أو األسهم المعاد شراؤها. 2. الإفصاح المجمع اقترح العديد من المعلقين السماح للمسجلين بتقديم الكشف المجدول المطلوب على أساس تجميعي وليس على أساس خطة كل خطة على حدة. (27) أشار هؤلاء المعلقون إلى أنه سيكون من العبء الذي لا مبرر له بالنسبة لكثير من المسجلين إذا كان يتعين إدراج الخطط بشكل منفصل في الجدول. [28] أعرب معلق آخر عن شواغل مماثلة إذا طلب من المسجلين تفصيل الخطط المفترضة نتيجة لعمليات الاندماج أو التوحيد أو معاملات الاستحواذ الأخرى. 29 ونحن مقتنعون بأن الإفصاح عن خطة خطة قد تكون مرهقة لكثير من المسجلين. وبناء على ذلك، قمنا بتنقيح الجدول للسماح للمسجلين بتجميع الإفصاح في فئتين عامتين: خطط تعويضات الأسهم التي وافق عليها أصحاب الحقوق وخطط تعويضات الأسهم التي لم يوافق عليها أصحاب الضمانات. (31) في بيان الاقتراح، طلبنا التعليق على ما إذا كان ينبغي أن يتضمن الكشف عن بيان الوكيل المطلوب تلك الخطة، عندما يقدم المسجل خطة تعويضات أسهم جديدة أو قائمة لإجراءات صاحب الضمان. 32 اقترح العديد من المعلقين توسيع الجدول ليشمل معلومات عن خطة قائمة يجري اتخاذ المزيد من الإجراءات بشأنها (على سبيل المثال، حيث يسعى المسجل للحصول على موافقة أصحاب الضمان لزيادة عدد الأوراق المالية المأذون بها للإصدار بموجب خطة). (33) أشار هؤلاء المعلقون إلى أنه، في غياب هذا الشرط، يجوز للمسجل الذي يعدل خطة تعويض حقوق الملكية الحالية أن يتفادى الكشف عن معلومات عن الأوراق المالية المأذون بها سابقا للإصدار بموجب الخطة. نحن مقتنعون بأن المسجلين يجب أن يتضمنوا هذه المعلومات في الجدول. وبناء على ذلك، وحيثما يجري اتخاذ إجراءات لتعديل خطة قائمة للتعويض عن حقوق الملكية، ينبغي أن يتضمن الجدول معلومات عن الأوراق المالية المأذون بها سابقا للإصدار بموجب الخطة، أي عدد الأوراق المالية التي ستصدر عند ممارسة العملية، ومعدل الترجيح المتوسط السعر، والخيارات المعلقة، والمذكرات والحقوق التي سبق منحها بموجب الخطة وعدد الأوراق المالية المتبقية للإصدار المستقبلي بموجب الخطة. 34 لا ینبغي علی المسجل أن یدرج في الجدول عدد الأوراق المالیة الإضافیة التي ھي موضوع تعدیل الخطة الذي یسعى المسجل إلی الحصول علی موافقة حامل الضمان. 3. الترتيبات الفردية والخطط المفترضة في بيان الاقتراح، طلبنا التعليق على ما إذا كان الإفصاح المجمع لترتيبات التعويض عن حقوق الملكية الفردية 35 مناسبا. وسألنا أيضا عما إذا كان ينبغي السماح بالإفصاح المجمع عندما يكون المسجل قد تولى خطة تعويض حقوق الملكية فيما يتعلق بعملية الدمج أو الدمج أو أي معاملة اكتساب أخرى. وأيد العديد من المعلقين الإفصاح المجمع عن الترتيبات الفردية (36)، وأيد أحد المعلقين تجميع الكشف عن الترتيبات الفردية مع الكشف عن خطط التعويض عن حقوق الملكية. 37 - فضل المعلقون الآخرون السماح بالإفصاح المجمع عن الخطط المفترضة. 38 وانسجاما مع مفهوم الإفصاح عن الخطة المجمعة، قمنا بتنقيح الجدول للسماح للمسجلين بدمج المعلومات عن الترتيبات الفردية 39 والخطط المفترضة (حيث يمكن تقديم المزيد من المنح والجوائز في إطار هذه الخطط) 40 مع معلومات عن الخطط الأخرى، وكلها في فئة الإفصاح المناسبة. .4 الخطط المعتمدة من قبل الحامل غير الأمني ​​كما هو مطبق، تتطلب التعديالت من المسجل أن يحدد ووصف باختصار، في شكل سرد، السمات المادية لكل خطة تعويض حقوق الملكية السارية اعتبارا من نهاية آخر سنة مالية مكتملة تم اعتمادها دون موافقة حامل الأمن. 41 وفي حين أيد العديد من المعلقين هذا الشرط، اقترح 42 معلق واحد أن نسمح للمسجلين بالإحالة المرجعية إلى الجزء من الكشف المطلوب عن نظام إدارة الأغذية والتغذية (123) الذي يتضمن وصفا لخططهم التي لم يوافق عليها حامل التأمين لتلبية هذا الشرط. ونظرا لأنھا تبسط الامتثال وتضمن حصول 44 مستفیدا سنویا علی ھذه المعلومات، فإننا نسمح للمسجلین بتلبیة متطلبات الإفصاح بھذه الطریقة. 45 ينبغي أن تحدد الإحالة المرجعية الخطة أو الخطط المحددة في الكشف المطلوب عن نظام إدارة الأغذية والتغذية 123 الذي لم يوافق عليه أصحاب الأمن. وفي ضوء هذا التغيير، ألغينا الحكم الذي كان سيسمح للمسجل بالوفاء بمتطلبات الكشف هذه ببساطة عن طريق تحديد الإيداع الذي يحتوي على وصف سردي للخطة في السنوات التالية للإفصاح الأولي. 5 - المسجلون الأجانب استفسر بعض المعلقين عن مدى انطباق المقترحات على المسجلين الأجانب. تاريخيا، طبقنا معيارا أكثر مرونة للمسجلين الأجانب من المسجلين المحليين في مجال الكشف عن التعويض التنفيذي. فعلى سبيل المثال، لا يحتاج المسجلون الأجانب إلى الكشف عن معلومات التعويض التنفيذي على أساس فردي ما لم يكشفوا عن ذلك بهذه الطريقة بموجب قانون البلد الأصلي أو غير ذلك. 46 نحن لا نرى أنه من الضروري أن تختلف من معاملتنا التاريخية للكشف عن التعويض التنفيذي للمسجلين الأجانب، 47 وبالتالي، فإننا لا تمديد التعديلات للمسجلين الأجانب في هذا الوقت. باء - العلاقة بالإفصاح عن الحسابات لقد أجرينا تغييرات هامة على المقترحات ردا على حجج العديد من المعلقين بأن الأدبيات المحاسبية الحالية تنص على الكشف الكافي عن التعويض القائم على الأسهم. (49) نوافق على أنه ينبغي لنا أن نسعى جاهدين للتقليل إلى أدنى حد من الإفصاح الزائد عن الحاجة في إطار مبادئ المحاسبة المقبولة عموما وقواعدنا، حيثما كان ذلك عمليا. وبناء على ذلك، قمنا بمراجعة المقترحات ولن يتطلب الإفصاح عن عدد الأوراق المالية المرخص لها بالإصدار بموجب كل خطة تعويض حقوق الملكية 50 وعدد الأوراق المالية المصدرة، بالإضافة إلى عدد الأوراق المالية التي ستصدر عند ممارسة الخيارات المعلقة، الحقوق الممنوحة، في إطار كل خطة خلال السنة المالية الماضية. 51 سيوفر الجدول المنقح معلومات مفيدة للمستثمرين غير متوفرة دائما في البيانات المالية للمسجلين. 52 يتضمن ذلك مؤشرا عما إذا كان قد تم اعتماد خطة تعويض حقوق الملكية من قبل حاملي الضمانات 53 إجمالي عدد الأوراق المالية المتاحة للإصدار المستقبلي في إطار برنامج تعويضات الأسهم المسجل 54 وعدد الخيارات والأوراق المالية الأخرى الممنوحة أو الممنوحة لغير الموظفين ل أغراض تعويضية. 55 لأن هذه المعلومات قد تكون مهمة للمستثمرين في اتخاذ قرارات مستنيرة بشأن التصويت والاستثمار، نعتقد أنه من الملائم أن يطلب من جميع المسجلين الخاضعين لقانون إكسهانج أكت للإبلاغ عنها بشكل منتظم. وحتى في الحالات التي تكون فيها المعلومات، مثل عدد الأوراق المالية التي ستصدر عند ممارسة العملية، ومتوسط ​​السعر المرجح للممارسة، والخيارات المعلقة، والمذكرات والحقوق، وإلا فإنها متاحة، فإنها ليست شفافة للمستثمرين. 56 تعزز التعديالت إمكانية الوصول إلى هذه المعلومات، مما يسهل على المستثمرين تقييم تأثير سياسات وممارسات تعويض األسهم الخاصة بالمسجلين. وعالوة على ذلك، تقدم التعديالت المعلومات في فئات - الخطط التي تمت الموافقة عليها من قبل حاملي األوراق المالية والخطط التي لم تتم الموافقة عليها من قبل حاملي األوراق المالية - والتي طلبها المستثمرون. 57 يبين الجدول التالي متطلبات الكشف الحالية ذات الصلة بالاتفاقية الخاصة بالتعديل على أساس المخزون (58)، والكشف الجديد المطلوب بموجب التعديلات التي يجري اعتمادها اليوم، على النحو المعدل للتقليل إلى أدنى حد ممكن من التكرار بين الاثنين. الإفصاح عن تعويض حقوق الملكية البند مطلوب من قبل سفاس 123 مطلوب من قبل البند 201 مفصح عنها حسب الفئة: الخطط التي وافق عليها أصحاب الأمن وخطط لم يوافق عليها أصحاب الأمن. يمكن إدراجها بالرجوع إلى التقرير السنوي عن الاستمارة 10-K بإدراجها في بيان بالوكالة..ج موقع الإفصاح کما ھو مقترح، کان علی المسجلین إدراج الجدول في بیان الوکیل عندما یقدمون خطة تعویض لإجراءات صاحب الضمان وفي التقریر السنوي عن الاستمارة 10-K في جمیع السنوات الأخرى. وفي بيان الاقتراح، طلبنا التعليق على ما إذا كان الموقع المقترح للكشف مناسب. واقترح معظم المعلقين أنه، من أجل الاتساق وتفادي الخلط، ينبغي أن نطلب الكشف في نفس الوثيقة كل عام. 59 نقلا عن أهمية المعلومات عند انتخاب المديرين، اقترح العديد من المعلقين أن نطلب الكشف في بيان الوكيل في جميع الحالات، حتى لو كان المسجل لا يقدم خطة تعويض لعمل صاحب الضمان. 60 - ومن ناحية أخرى، أوصى المعلقون الآخرون بأن نطلب الكشف فقط في التقرير السنوي عن الاستمارة 10-K. 61 على الرغم من أن فكرة المطالبة بالإفصاح في مكان واحد جذابة، فقد اخترنا عدم القيام بذلك لعدة أسباب. وإذا اعتمدنا شرطا بأن يظهر الجدول فقط في بيانات الوكيل، فإن عددا كبيرا من الشركات التي تنشأ التزاماتها المتعلقة بالإبلاغ فقط بموجب المادة 15 (د) من قانون التبادل 62 لن تخضع للشرط. وليس مطلوبا من هذه الشركات إعداد وتقديم بيانات الوكيل. وعلاوة على ذلك، فإننا لسنا مقتنعين، كقاعدة عامة، بأن الكشف المقترح يعتبر جوهريا بالنسبة لقرارات التصويت التي يتخذها أصحاب الضمانات بخلاف تلك المتعلقة بخطط التعويضات. 63 كما أننا لا نعتقد أن الجدول ينبغي أن يكون موجودا حصرا في التقرير السنوي عن الاستمارة 10-K. على الرغم من أن التقرير السنوي عن النموذج 10-K يودع معنا، لا يطلب من المسجل لتسليمه لأصحاب الأمن. وبالتالي، يجب على أصحاب الأمن اتخاذ بعض الإجراءات الإيجابية للحصول على المعلومات. 65 وبالإضافة إلى ذلك، فإن قصر الجدول على التقرير السنوي عن الاستمارة 10-K سيؤدي إلى سوء الكشف في الحالات التي تكون فيها المعلومات مفيدة للمستثمرين في تقييم مزايا خطة التعويض المقدمة لإجراءات صاحب الضمان. 66 وقد خلصنا إلى أن أفضل طريقة لتعزيز الاتساق والوضوح والتنسيب المناسب للمعلومات الجديدة هي المطالبة بأن يدرج الجدول كل عام في التقرير السنوي للمسجلين بشأن النموذج 10-K 67، بالإضافة إلى ذلك في بيان الوكيل عندما يقوم المسجل بتقديم خطة تعويض لإجراءات صاحب الضمان. 68 في الحالات التي يطلب فيها من المسجل تضمين المعلومات في كلتا المودعين، فإنه قد يفي بالالتزام بالإفصاح عن النموذج 10-K من خلال تضمين المعلومات المطلوبة بالرجوع إلى بيان الوكيل النهائي، إذا كان ذلك البيان ينطوي على انتخاب أعضاء مجلس الإدارة ويتم إيداعه في موعد أقصاه 120 يوما بعد نهاية السنة المالية التي يغطيها النموذج 10-K. د. إيداع نسخة من حامل غير الأمن - خطط معتمدة في بيان الاقتراح، طلبنا التعليق على ما إذا كان، بدلا من، أو بالإضافة إلى، الكشف السردي المطلوبة لخطة تعويض حقوق الملكية التي تم اعتمادها دون الحصول على موافقة من أصحاب األوراق المالية، يجب أن يطلب من المسجل تقديم نسخة من الخطة كمعرض لتقرير المسجلين السنوي عن النموذج 10-K للسنة المالية التي اعتمدت فيها الخطة. 70 فضل العديد من المعلقين اشتراط الإيداع بالإضافة إلى مطالبة المسجلين بتقديم كشف سردي عن السمات القطاعية لخطط تعويض الأسهم التي لم يوافق عليها صاحب الضمان. 71 يتطلب البند 601 (ب) (10) من الالئحة S-K 72 للمسجلين إيداع العقود المادية كمعارض لكثير من وثائقهم المودعة بموجب قانون األوراق المالية لعام 1933) قانون كوتسكوريتيز أكتكوت (وقانون التبادل. ومما له أهمية خاصة الحكم الوارد في البند 601 (ب) (10) '3' الذي ينص على أن عقد إدارة الأقفاص أو أي خطة أو عقد أو ترتيب تعويضي آخر يشمل، على سبيل المثال لا الحصر، الخطط المتعلقة بالخيارات أو الأوامر أو الحقوق أو المعاش التقاعدي أو التقاعد أو التعويض أو المكافأة المؤجلة، أو الحوافز أو تقاسم الأرباح التي يعتبر فيها أي عضو أو أي من المديرين التنفيذيين المعينين للمسجل مشاركا جوهريا، ويجب تقديمه. 73 البند (601 (ب) (10) (3) أو عقد إدارة أو أي خطة تعويضية أخرى أو عقد أو ترتيب يودع فيه أي موظف تنفيذي آخر للمسجل ما لم يكن غير ذي قيمة أو بأهمية. 74 أعرب بعض المعلقين عن قلقهم من أن الخطط غير المعتمدة من قبل صاحب الضمان، التي تستبعد الموظفين التنفيذيين والمديرين التنفيذيين، لا تدخل في كثير من الأحيان ضمن هذه الأحكام. 75 ونحن نعتقد أن هذا القلق له ميزة. وبناء على ذلك، قمنا بتعديل البند 601 (ب) (10) مطالبة المسجلين بتقديم أي خطة تعويض حقوق الملكية المعتمدة دون موافقة أصحاب الضمان الذي يشارك فيه أي موظف (سواء كان مسؤولا تنفيذيا أم مدير تسجيل) في مبلغ أو أهمية. 76- وينبغي أن يكفل الامتثال لهذا المطلب توافر خطط كبيرة غير معتمدة من أصحاب الضمانات للمستثمرين. 77 إلى جانب الوصف السردي المطلوب للخطط التي لم يوافق عليها حامل التأمين، يجب أن يكون لدى المستثمرين إمكانية الحصول على معلومات كاملة عن خطط تعويضات رأس المال الرئيسية للمسجلين. III. تحليل قانون تقليل الورقات تحتوي التعديلات على مجموعة من المعلومات المتطلبات المطلوبة بالمعنى المقصود في قانون تخفيض الأوراق الورقية لعام 1995 أو 78 أو تقييم المخاطر. وقد نشرنا إخطارا يطلب فيه التعليق على مجموعة من المعلومات المطلوبة في بيان الاقتراح، وقدم هذه المتطلبات إلى مكتب الإدارة والميزانية أو مكتب إدارة الشؤون الإدارية لمراجعتها. وبعد ذلك، وافق المكتب على المتطلبات المقترحة لجمع المعلومات. وكما ورد في القسم الأول أعلاه، تلقينا عدة رسائل للتعليق على المقترحات. وقد أدخلنا عددا من التغييرات على المقترحات استجابة لهذه التعليقات. وبناء على ذلك، فإننا نراجع تقديراتنا السابقة للأعباء. ونحن نقدم التقديرات المنقحة إلى مكتب إدارة العمليات للموافقة عليها. 80 لا يجوز للوكالة أن تجري أو ترعى، ولا يشترط على الشخص الرد على مجموعة من المعلومات ما لم يعرض رقما ساريا في الوقت الحالي. ألف - ملخص التعديالت تتطلب التعديالت إفصاحات مجدولة عن عدد األوراق المالية التي سيتم إصدارها عند ممارسة العملية، ومتوسط ​​سعر الممارسة المرجح لجميع الخيارات المعلقة والمذكرات والحقوق بموجب خطط تعويض حقوق الملكية للمسجلين باإلضافة إلى العدد) من الأوراق المالية المتبقية للإصدار المستقبلي بموجب هذه الخطط وبعض المعلومات ذات الصلة. يتم اإلفصاح في فئتين: الخطط التي تمت الموافقة عليها من قبل حاملي األوراق المالية والخطط التي لم تتم الموافقة عليها من قبل حاملي األوراق المالية. يجب على المسجلين تضمين الجدول في تقاريرهم السنوية حول النموذج 10-K أو 10-كسب، بالإضافة إلى ذلك في بياناتهم بالوكالة أو بياناتهم في السنوات التي يقدمون فيها خطة تعويض لإجراءات صاحب الضمان. كما يجب على المسجلين أن يقدموا نسخا من خططهم غير المعتمدة من قبل صاحب الضمان، ما لم تكن غير مادية من حيث المبلغ أو الأهمية. ويعد إعداد وتقديم تقرير سنوي عن النموذج 10-K أو 10-كسب هو مجموعة من المعلومات. وبالمثل، فإن إعداد وتقديم ونشر بيان بالوكالة أو بيان معلومات هو مجموعة من المعلومات. 81 جمع المعلومات إلزامي لجميع المسجلين وليس هناك فترة إلزامية للاحتفاظ بالمعلومات التي تم جمعها. لن يتم الحفاظ على سرية المعلومات. باء - ملخص رسائل التعليق وتنقيحات المقترحات طلبنا التعليق على تحليل تقييم المخاطر الذي يتضمنه بيان الاقتراح. تلقينا ست رسائل تعليق تتناول على وجه التحديد عبء العمل التقديري المقدر المرتبط بمجموعات المعلومات. وأشار هؤلاء المعلقون إلى أن مقدار الوقت اللازم للامتثال للمقترحات سيكون كبيرا بالنسبة لكثير من المسجلين ويزيد كثيرا عن تقديراتنا. وقد قدر أحد المعلقين أن المقترحات، إذا اعتمدت، ستضيف أربع صفحات على الأقل إلى وثائق الإفصاح الخاصة بها، وفي الحالات التي يظهر فيها الكشف في البيان الوكيل، ستؤدي تكاليف الطباعة الإضافية إلى 000 100 وتكاليف البريد الإضافية التي تبلغ 200 000 للصفحات الإضافية. 83 واقترح معلق آخر أن نقابل أي زيادة في التكاليف للمسجلين من خلال إزالة المتطلبات الحالية التي لا تؤدي إلى الكشف عن المعلومات المفيدة. [84] اقترح معلق ثالث أن ننظر في توفير نموذج نموذجي من الكشف للشركات الصغيرة للحد من عبء الامتثال لها. 85 وردا على هذه التعليقات، أدخلنا عددا من التغييرات على المقترحات، بما في ذلك إزالة اثنين من الأعمدة الجدولية المقترحة والسماح بالإفصاح المجمع. كما أننا نسمح للمسجلين الذين لديهم خطط غير معتمدة من قبل حامل الضمانات بوصف المصطلحات المادية لهذه الخطط عن طريق الإحالة المرجعية إلى إفصاحهم عن المعيار سفاس 123. وستؤدي ھذه التغییرات إلی تبسیط الامتثال، وبالتالي تقلیل العبء علی المسجلین. وفي حين أن التعديالت تتطلب إيداع خطط تعويض األسهم غير الموافق عليها من قبل حامل األوراق المالية ما لم تكن غير جوهرية من حيث الكمية أو األهمية، فإن ذلك ال ينبغي أن يزيد العبء على المسجلين بشكل كبير نظرا ألن هذه الوثائق متوفرة بسهولة وسيتم تقديمها إلكترونيا. جيم - تنقيحات إعداد التقارير وتقديرات عبء التكاليف نتيجة للتغييرات الموصوفة أعلاه والتغيير في أحد الافتراضات الأساسية لدينا (86)، فقد تغيرت تقديرات الإبلاغ والتكاليف المتعلقة بمجموعات المعلومات. وبناء على ذلك، قمنا بمراجعة المتطلبات التقديرية لجمع المعلومات التي قدمت أصلا إلى مكتب إدارة العمليات. وفيما يتعلق بالاستمارات 10-K و 10-كسب، قمنا بزيادة تقديراتنا بمقدار 1،174 ساعة في حالة النموذج 10-K وزيادة تقديرنا بمقدار 707 ساعة في حالة النموذج 10-كسب. وفيما يتعلق بالجدولين 14 ألف و 14 جيم، فقد خفضنا تقديراتنا بمقدار 13،139 ساعة في حالة الجدول 14 ألف ونقصنا تقديرنا بمقدار 139 ساعة في حالة الجدول 14 جيم. تستند تقديراتنا إلى عدة افتراضات. أولا، نحن نقدر أن ما یقرب من 60 87 من المسجلین الذین یقدمون تقریرا سنویا عن النموذج 10-K أو 10-كسب یحافظون علی خطط تعویض الأسھم وسوف یكون مطلوبا تقدیم جدول الإفصاح الجدید. 88 كما أننا نقدر أن حوالي 2089 من هؤلاء المسجلين يحتفظون بخطط تعويضات الأسهم التي لا يعتمد عليها حامل التأمين، وبالتالي سوف تكون هناك حاجة لوصف الخصائص المادية لهذه الخطط ونسخ الملفات معنا ما لم تكن غير ذات قيمة أو أهمية. 90 ونقدر كذلك أنه في أي سنة، سيعتمد 30 91 من المسجلين الذين لديهم خطط تعويض حقوق الملكية خطة جديدة أو يعدلون خطة قائمة لزيادة عدد الأوراق المالية المأذون بها للإصدار بموجب الخطة، مما يؤدي إلى الكشف عن بيانات الوكيل أو البيانات . 92 في هذه الحالة، افترضنا أن المسجل سوف يتضمن الكشف المطلوب في بيان الوكيل أو بيان المعلومات ويتضمن هذا الكشف بالرجوع إلى تقريره السنوي عن النموذج 10-K أو 10-كسب. نحن نقدر أن ما يقرب من 28 93 من المسجلين الذين يرسلون تقارير سنوية عن النموذج 10-K أو 10-كسب يخضعون للقسم 13 من قانون الصرف بموجب المادة 15 (د) من قانون الصرف، وبالتالي لا يتم إيداع وكيل أو بيانات المعلومات 94 وأن حوالي 98 95 من ملف ملف المسجلين بدلا من المعلومات والبيانات المتعلقة باجتماعهم السنوي لأصحاب الأمن الذين سيتم انتخاب المديرين. 96 وأخيرا، فإننا نقدر أن إعداد الكشف المجدول المطلوب سوف يستغرق ساعتين من العبء، وعند الاقتضاء، فإن إعداد وصف السمات المادية لخطة تعويض حقوق الملكية غير المعتمدة من قبل صاحب الضمان سوف يستغرق ساعتين من العبء. (97) يرد في الجدول التالي تقديرنا المنقح لساعات العبء الكلي للمجموعات المطلوبة من المعلومات. وبالإضافة إلى الساعات الداخلية التي ستنفقها (108)، نتوقع أن يحتفظ المسجلون بالمستشارين الخارجيين للمساعدة في إعداد الإفصاحات المطلوبة. 109 ويقدر مجموع التكلفة الدولارية للامتثال للنموذج 10-K والنموذج 10-كسب المنقح ليشمل تكاليف المحامين الخارجيين المتوقعة من التعديلات بمبلغ 2،345،268،300 للنموذج 10-K، أي بزيادة قدرها 1،758،300 عن العبء السنوي الحالي و 000 343 562 2 جنيه استرليني، و 562 605 100 جنيه استرليني ل Form10-كسب، بزيادة قدرها 617 100 دولار عن العبء السنوي الحالي البالغ 000 988 561 دولار. ويقدر مجموع التكلفة الدولارية للامتثال للأنظمة 14 ألف و 14 جيم المنقحة لتشمل تكاليف المحامين الخارجيين المتوقعة من التعديلات بمبلغ 000 254 93 دولار للمادة 14 ألف بزيادة قدرها 500 640 من العبء السنوي الحالي البالغ 000 614 92 و 200 382 2 من اللائحة التنظيمية 14 جيم، أي بزيادة قدرها 200 13 من العبء السنوي الحالي البالغ 000 369 2. 110 د. طلب ​​التعليق نطلب التعليق من أجل (أ) تقييم ما إذا كانت مجموعات المعلومات ضرورية لأداء وظائفنا بشكل سليم، بما في ذلك ما إذا كانت المعلومات ستكون ذات فائدة عملية، (ب) تقييم دقة تقديرنا عبء جمع المعلومات، (ج) تحديد ما إذا كانت هناك طرق لتحسين نوعية المعلومات التي يتعين جمعها وفائدتها ووضوحها؛ (د) تقييم ما إذا كانت هناك طرق لتقليل عبء مجموعات المعلومات إلى أدنى حد ممكن who respond, including through the use of automated collection techniques or other forms of information technology. 111 Any member of the public may direct to us any comments concerning the accuracy of this burden estimate and any suggestions for reducing this burden. Persons who desire to submit comments on the collection of information requirements should direct their comments to the OMB, Attention: Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Washington, DC 20503, and send a copy of the comments to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street NW, Washington, DC 20549, with reference to File No. S7-04-01. Requests for materials submitted to the OMB by us with regard to this collection of information should be in writing, refer to File No. S7-04-01 and be submitted to the Securities and Exchange Commission, Records Management, Office of Filings and Information Services, 450 Fifth Street NW, Washington, DC 20549. Because the OMB is required to make a decision concerning the collections of information between 30 and 60 days after publication, your comments are best assured of having their full effect if the OMB receives them within 30 days of publication. IV. Costs and Benefits of Final Rules The use of equity compensation, particularly stock options, has grown significantly during the last decade. 112 Consequently, existing security holders may face higher levels of dilution of their ownership interests as some companies issue more shares of their stock to employees. 113 Since the distribution of equity may result in a significant reallocation of ownership in an enterprise between existing security holders and management and employees, investors have a strong interest in understanding a registrants equity compensation program. 114 Until recently, security holder approval was required for most equity compensation plans. However, as approval requirements have been relaxed 115 and as opposition to these plans has grown, 116 an increasing number of registrants have adopted stock option plans without the approval of security holders, 117 thus potentially obscuring investors ability to assess the dilutive effect of a registrants equity compensation program. Our current rules do not require that a registrant disclose specific information about its non-security holder-approved equity compensation plans. 118 Nor do current financial reporting disclosure rules require that non-security holder-approved plans be identified. 119 Consequently, it is often difficult for investors to determine whether they have adequate information about a registrants equity compensation program. In response to ongoing investor concerns, 120 in January 2001 we proposed amendments to our rules to enhance the quality of information available to investors about equity compensation plans. 121 B. Response to Comment Letters In the Proposing Release, we noted that registrants would incur costs in complying with the proposals. We also noted that these costs, to the extent that they could be estimated, would not be significant, as the required disclosure can be derived from information that is readily available to registrants through the routine administration of their equity compensation programs. We requested comment on the costs and benefits of the proposals. Of the comment letters we received, 22 respondents discussed the costs and benefits associated with the proposals. 122 Most of the comment letters addressed these matters in general terms. Several respondents asserted that, because the proposals duplicated disclosure already required in registrants audited financial statements, the cost of providing information to investors would increase without any useful benefit. 123 In response to these comments, we have revised the proposals to eliminate redundant disclosure and to minimize the overlap with financial reporting requirements, thereby reducing the cost of compliance. As discussed in Subsection C below, the amendments will enhance the quality of the disclosure available to investors about the dilutive effect of registrants equity compensation programs. Other respondents, while generally supporting the proposals, suggested that we scale back the required disclosure to reduce compliance costs. For example, some respondents indicated that requiring plan-by-plan disclosure would create an undue burden for registrants without providing an incremental benefit to investors. 124 In response to these comments, we have revised the proposals to permit aggregated disclosure of information about plans and individual equity compensation arrangements and to allow the required narrative summary of a non-security holder-approved stock option plan to be provided by a cross-reference to a description of the plan in a registrants financial statements. 125 Some respondents suggested that we expand the required disclosure to include additional information, such as weighted-average exercise price data and information about existing equity compensation plans being submitted for security holder action. They also requested that we require the filing of non-security holder-approved equity compensation plans. We have made these changes. 126 Most respondents suggested that the proposed disclosure be required in the same document each year, to both streamline compliance and to minimize investor confusion. While we carefully considered this suggestion, ultimately we concluded that these concerns were outweighed by the need for consistent application of the disclosure to all registrants. 127 Accordingly, the required disclosure is to be provided each year in a registrants annual report on Form 10-K or 10-KSB and, additionally, in the proxy or information statement in years when the registrant is submitting a compensation plan for security holder action. 1. Disclosure of Non-Security Holder-Approved Plans New Item 201(d)(1) of Regulation S-K and Regulation S-B requires registrants to disclose whether they have one or more non-security holder-approved stock option plans by separately providing information about the dilutive effects of these plans. New Item 201(d)(3) of Regulation S-K and Regulation S-B requires that this disclosure be accompanied by a narrative summary of the material features of each non-security holder-approved plan. Also, as amended Item 601(b)(10) of Regulation S-K and Regulation S-B requires registrants to file a copy of any non-security holder-approved equity compensation plan with us unless the plan is immaterial in amount or significance. Presently, it is difficult for investors to ascertain whether a registrant has adopted a non-security holder approved stock option plan. 128 If a plan is broad-based, restricts or prohibits the participation of officers and directors and does not permit the grant of tax-qualified stock options, for instance, it is unlikely to require security holder approval. Frequently, investors must examine the required public filings of a registrant made over several years in order to identify the registrants stock option plans and determine if they have been approved by security holders. Even when a non-security holder-approved plan is identified, information about the plan may be limited since it may not be subject to our disclosure rules and may not be filed with us. The amendments will enable investors to ascertain if a registrant has adopted a non-security holder approved plan and highlight a description of the plans material features. 2. Tabular Disclosure New Item 201(d)(1) of Regulation S-K and Regulation S-B requires registrants to disclose, for their entire equity compensation program as in effect as of the end of the last completed fiscal year, the number of securities underlying, and the weighted-average exercise price of, outstanding options, warrants and rights and the number of securities remaining available for future issuance. This disclosure is to be made separately for plans approved by security holders and plans that have not been approved by security holders. The required disclosure will assist investors in assessing the potential dilution from a registrants equity compensation program in two ways. First, the required disclosure of the number of securities to be issued upon the exercise, and weighted-average exercise price, of all outstanding options, warrants and rights will enable investors to view this information in two categories: plans approved by security holders and plans not approved by security holders. While numerical and weighted-average exercise price information is presently available in the footnotes to a registrants audited financial statements, this disclosure does not separately identify the potential dilutive effect of any non-security-holder approved stock option plans. Second, disclosure of the number of securities available for future issuance under a registrants equity compensation plans will enable investors to better calculate the quotoverhangquot 129 resulting from the registrants entire equity compensation program. Under existing disclosure requirements, it is not always possible to make this calculation. 130 This information may be useful to investors where the cost of a registrants equity compensation plan exceeds its incentive effects. The new disclosure also will enhance the ability of investors and others, such as proxy review firms, to monitor the impact of a board of directors actions concerning equity compensation matters. Access to this information will make it easier for investors to determine both the portion of the current value of a business that will be transferred to option holders upon exercise and the potential allocation of future cash flow rights. 131 While the economic impact of outstanding options, warrants and rights is incorporated into the presentation of diluted earnings-per-share under SFAS 128, this calculation differs from the new disclosure in several ways. First, it does not isolate quotcompensatoryquot instruments. Typically, the diluted earnings-per-share figure combines the dilutive effect of compensatory options, warrants and rights with that of other outstanding convertible securities. Second, SFAS 128 employs the so-called quottreasury stock methodquot to compute diluted earnings-per-share. Among other things, this methodology excludes quotout-of-the-moneyquot options and warrants from the computation and requires certain assumptions about the timing of option exercises and the use of the assumed proceeds of exercise to arrive at the total number of potentially dilutive securities. Finally, while weighted-average exercise price information is available for various option groupings under SFAS 123, it does not differentiate between equity compensation plans that have been approved by security holders and plans that have not been approved by security holders. The amendments will increase the cost of preparing annual reports on Form 10-K and 10-KSB and proxy and information statements. Registrants must compile the required information, place it in the appropriate category and prepare the required table. In addition, registrants with non-security holder-approved stock option plans must prepare a narrative summary of the material features of each plan and file a copy of any material plan with us. Registrants also will incur an increase in printing and distribution costs as a result of the amendments. While several respondents indicated that the cost estimates in the Proposing Release were too low, 132 only one provided an alternative cost estimate. This respondent stated that compliance could result in additional costs approximating 300,000 in years when disclosure was required in its proxy statement. 133 The respondents estimate is no longer relevant because of the substantial revisions that we have made to the proposals, as discussed in Subsection B above. The required disclosure will provide investors both with new information and with an alternative means for analyzing currently available information. With respect to the dilution disclosure, we believe that the compliance costs are warranted because this information is not otherwise available to investors. Moreover, these costs should be minimal because this information can be derived from information that is readily available to registrants through the routine administration of their equity compensation programs. With respect to the information concerning non-security holder-approved stock option plans, much of the required tabular disclosure, such as the number of outstanding options, warrants and rights and the related weighted-average exercise price data, is already maintained for purposes of satisfying financial reporting requirements. The amendments merely require registrants to disclose this information on the basis of whether or not the related plan has been approved by security holders. In addition, many registrants summarize the material features of their equity compensation plans to satisfy their SFAS 123 disclosure obligations. Indeed, one respondent indicated that the amendments would result in only minimal additional costs to registrants because, in their experience, most registrants already maintain the required information in order to comply with SRO rules and for effective plan administration. 134 Although the amendments will increase the length of registrants annual reports on Form 10-K and 10-KSB, as well as their proxy and information statements, generally this should not have a major impact on a registrants printing and distribution costs. We have revised the proposals to reduce and standardize the size of the required tabular disclosure. These revisions should ensure that registrants do not incur significant additional printing and postage charges to prepare and distribute their proxy or information statements to security holders. While in most instances, the required disclosure should not exceed one-third of a page, where a registrant has one or more non-security holder-approved stock option plans, the disclosure may be longer. These registrants may incur additional expense to print and distribute their proxy or information statement materials. While we do not expect these costs to be significant, we have estimated these amounts to be approximately 750 per registrant. 135 For the reasons discussed above, we do not believe that the amendments will lead to significant compliance costs for registrants. 136 Notwithstanding the foregoing, we have adjusted our initial cost estimates to reflect the revisions made to the proposals. Because the size and scope of equity compensation programs vary among registrants, it is difficult to provide an accurate cost estimate with which all parties will agree however, we estimate that each of the approximately 8,400 registrants 137 subject to the amendments will spend an average of approximately one to two hours each year and incur an average annual cost of approximately 393 138 to prepare the disclosure. Thus, the aggregate cost of the amendments is estimated to be approximately 3,300,000. Based on the information provided in the comment letters and our own analysis, we believe that the amendments will enhance the quality of disclosure available to investors about registrants equity compensation plans, thereby leading to better-informed investment and voting decisions. These benefits are difficult to quantify. We also believe that these benefits will justify the minimal costs of compliance. V. Final Regulatory Flexibility Analysis This Final Regulatory Flexibility Analysis, or FRFA, has been prepared in accordance with the Regulatory Flexibility Act. 139 This FRFA relates to rule amendments adopted under the Exchange Act that revise the disclosure requirements with respect to registrants equity compensation plans. Specifically, the amendments revise Item 201 of Regulation S-B, Item 201 of Regulation S-K and Form 10-K, Form 10-KSB, Exchange Act Rule 14a-3 and Schedule 14A under the Exchange Act to require tabular disclosure of the number and weighted-average exercise price of all outstanding options, warrants and rights under a registrants equity compensation plans, as well as the number of securities remaining available for future issuance under these plans and certain related information. Disclosure is to be made in two categories: plans that have been approved by security holders and plans that have not been approved by security holders. Registrants must include the table in their annual reports on Form 10-K or 10-KSB, as well as in their proxy or information statements in years when they are submitting a compensation plan for security holder action. Copies of most equity compensation plans will be required to be filed with us for public inspection. A. Need for the Amendments The increased use of equity compensation has raised investor concerns about the potential dilutive effect of a registrants equity compensation plans, the absence of full disclosure to security holders about these plans and the adoption of many plans without the approval of security holders. These concerns may be especially acute for investors in small entities, which use equity compensation in order to attract and retain key employees and to preserve scarce cash resources. 140 The amendments enhance the quality of information available to investors about a registrants equity compensation plans. B. Significant Issues Raised by Public Comment A summary of the Initial Regulatory Flexibility Analysis, or IRFA, appeared in the Proposing Release. 141 We requested comment on any aspect of the IRFA, including the number of small businesses that would be affected by the proposals, the nature of the impact, how to quantify the number of small entities that would be affected and how to quantify the impact of the proposals. We received no comment letters responding to that request. C. Small Entities Subject to the Amendments Exchange Act Rule 0-10 142 defines the term quotsmall businessquot to be an issuer that, on the last day of its most recent fiscal year, has total assets of 5 million or less. 143 There are approximately 770 issuers that are subject to the reporting requirements of Section 13 of the Exchange Act that have assets of 5 million or less. 144 Only small businesses that have a reporting obligation under the Exchange Act and adopt or maintain an equity compensation plan will be subject to the amendments. We estimate that there are approximately 460 entities that have total assets of 5 million or less that meet this criteria. 145 D. Projected Reporting, Recordkeeping and Other Compliance Requirements The amendments impose new reporting requirements by requiring specific annual disclosure by all registrants, including quotsmall businesses, quot concerning their equity compensation plans in effect as of the end of the most recently completed fiscal year. Consequently, the amendments will increase the costs associated with the preparation of the disclosure included in annual reports on Form 10-K or 10-KSB and furnished to security holders in proxy and information statements. Specifically, the amendments require registrants to disclose the number and weighted-average exercise price of all outstanding options, warrants and rights under a registrants equity compensation plans, as well as the number of securities remaining available for future issuance under these plans and certain related information. Disclosure is to be made in two categories: plans that have been approved by security holders and plans that have not been approved by security holders. Since this information can be derived from information that is readily available to registrants through the routine administration of their equity compensation programs, we do not expect these additional costs to be significant. We do not anticipate that the amendments will impose any significant recordkeeping requirements in addition to those already required under the Exchange Act. The information to be disclosed can be derived from information that is readily available to registrants through the routine administration of their equity compensation programs. All registrants with equity compensation plans have various legal, financial reporting and other disclosure obligations that require maintenance of information regarding these plans similar to that covered by the amendments. E. Agency Action to Minimize Effect on Small Entities As required by Sections 603 and 604 of the Regulatory Flexibility Act, we have considered alternatives that would accomplish the stated objectives, while minimizing any significant adverse impact on small entities. In connection with the amendments, we considered several alternatives, including the following: establishing different compliance and reporting requirements that take into account the resources of small entities clarifying, consolidating or simplifying compliance and reporting requirements under the rules for small entities using performance rather than design standards and exempting small entities from all or part of the requirements. Overall, the amendments are intended to assist investors in understanding a registrants equity compensation policies and practices. The quality of information available about the potential dilutive effect of a registrants equity compensation plans is relevant to investors in both small and large entities. Different compliance or reporting requirements for small entities are not appropriate because small entities may use equity compensation plans to a greater extent than large entities to preserve scarce cash resources. 146 In addition, it is not feasible to further clarify, consolidate or simplify the amendments for small entities because the amendments require only minimal information about a registrants equity compensation plans. Because uniformity and comparability are important, especially where small entities have equity compensation plans, we do not propose to use performance standards to specify different requirements for small entities. Finally, we believe that the amendments should apply equally to all entities required to disclose information, in order to safeguard protection of all investors. VI. Analysis of Impact on the Economy, Burden on Competition and Promotion of Efficiency, Competition and Capital Formation Section 23(a)(2) of the Exchange Act 147 requires us, when adopting rules under the Exchange Act, to consider the impact that any new rule will have on competition. In addition, Section 23(a)(2) prohibits us from adopting any rule that will impose a burden on competition not necessary or appropriate in furtherance of the purposes of the Exchange Act. We have considered the amendments in light of the standards in Section 23(a)(2). We requested comment on any anti-competitive effects of the proposals. We received no comment letters responding to that request. The amendments may have a disparate impact on registrants that use equity compensation extensively, such as smaller firms or registrants in certain industry sectors (such as high-technology companies), as compared to registrants with limited or no equity compensation programs. 148 Thus, we are sensitive to the concern that registrants with a greater compliance obligation will be placed at a competitive disadvantage. In addition, several commenters, while not specifically addressing this issue, did argue that the new disclosure would be duplicative of information currently required to be included in registrants audited financial statements. In response to these concerns, we have revised the proposals to eliminate redundant requirements and to streamline the compliance process. Because these changes should enable registrants to keep compliance costs low, we do not believe that the amendments will impose a significantly disproportionate cost on smaller firms or high-technology companies. Section 2(b) of the Securities Act and Section 3(f) of the Exchange Act 149 require us, when engaging in rulemaking requiring us to consider or determine whether an action is necessary or appropriate in the public interest, to consider, in addition to the protection of investors, whether the action will promote efficiency, competition and capital formation. We have considered the amendments in light of the standards in these provisions. We requested comment on how the proposals would affect efficiency, competition and capital formation. We received no comment letters responding to that request. It is widely believed that equity compensation, particularly instruments such as stock options, can be used to align the interests of employees and security holders, thereby promoting effective corporate governance. 150 Because an equity compensation plan may necessarily have an unintended dilutive effect on the existing ownership interests, however, it is important that the plan be closely monitored to ensure that its cost is commensurate with its benefit to investors. The amendments are intended to enhance the quality of disclosure about registrants equity compensation programs that is available to investors. Increasing the transparency of these programs should result in better monitoring by investors. This should result in better corporate governance, thereby increasing the efficiency of the organization. This should promote capital formation. VII. Statutory Authority The amendments contained in this release are being adopted under the authority set forth in Sections 3(b) and 19(a) of the Securities Act and Sections 12, 13, 14(a), 15(d) and 23(a) of the Exchange Act. List of Subjects in 17 CFR Parts 228, 229, 240 and 249 Reporting and recordkeeping requirements, Securities. TEXT OF RULE AMENDMENTS In accordance with the foregoing, Title 17, Chapter II of the Code of Federal Regulations is amended as follows: PART 228 - INTEGRATED DISCLOSURE SYSTEM FOR SMALL BUSINESS ISSUERS 1. The general authority citation for Part 228 continues to read as follows: Authority . 15 U. S.C. 77e, 77f, 77g, 77h, 77j, 77k, 77s, 77z-2, 77aa(25), 77aa(26), 77ddd, 77eee, 77ggg, 77hhh, 77jjj, 77nnn, 77sss, 78 l . 78m, 78n, 78o, 78u-5, 78w, 78 ll . 80a-8, 80a-29, 80a-30, 80a-37 and 80b-11, unless otherwise noted. 2. Section 228.201 is amended by adding paragraph (d) before the Instruction to read as follows: sect228.201 (Item 201) Market for Common Equity and Related Stockholder Matters. (d) Securities authorized for issuance under equity compensation plans . (1) In the following tabular format, provide the information specified in paragraph (d)(2) of this Item as of the end of the most recently completed fiscal year with respect to compensation plans (including individual compensation arrangements) under which equity securities of the small business issuer are authorized for issuance, aggregated as follows: (i) All compensation plans previously approved by security holders and (ii) All compensation plans not previously approved by security holders. Equity Compensation Plan Information Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by security holders (2) The table shall include the following information as of the end of the most recently completed fiscal year for each category of equity compensation plan described in paragraph (d)(1) of this Item: (i) The number of securities to be issued upon the exercise of outstanding options, warrants and rights (column (a)) (ii) The weighted-average exercise price of the outstanding options, warrants and rights disclosed pursuant to paragraph (d)(2)(i) of this Item (column (b)) and (iii) Other than securities to be issued upon the exercise of the outstanding options, warrants and rights disclosed in p aragraph (d)(2)(i) of this Item, the number of securities remaining available for future issuance under the plan (column (c)). (3) For each compensation plan under which equity securities of the small business issuer are authorized for issuance that was adopted without the approval of security holders, describe briefly, in narrative form, the material features of the plan. Instructions to Paragraph (d). 1. Disclosure shall be provided with respect to any compensation plan and individual compensation arrangement of the small business issuer (or parent, subsidiary or affiliate of the small business issuer) under which equity securities of the small business issuer are authorized for issuance to employees or non-employees (such as directors, consultants, advisors, vendors, customers, suppliers or lenders) in exchange for consideration in the form of goods or services as described in Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation . or any successor standard. No disclosure is required with respect to (i) any plan, contract or arrangement for the issuance of warrants or rights to all security holders of the small business issuer as such on a pro rata basis (such as a stock rights offering) or (ii) any employee benefit plan that is intended to meet the qualification requirements of Section 401(a) of the Internal Revenue Code (26 U. S.C. sect401(a)). 2. For purposes of this paragraph, an quotindividual compensation arrangementquot includes, but is not limited to, the following: a written compensation contract within the meaning of quotemployee benefit planquot under sect230.405 of this chapter and a plan (whether or not set forth in any formal document) applicable to one person as provided under Item 402(a)(7)(ii) of Regulation S-B (sect228.402(a)(7)(ii)). 3. If more than one class of equity security is issued under its equity compensation plans, a small business issuer should aggregate plan information for each class of security. 4. A small business issuer may aggregate information regarding individual compensation arrangements with the plan information required under paragraph (d)(1)(i) and (ii) of this item, as applicable. 5. A small business issuer may aggregate information regarding a compensation plan assumed in connection with a merger, consolidation or other acquisition transaction pursuant to which the small business issuer may make subsequent grants or awards of its equity securities with the plan information required under paragraph (d)(1)(i) and (ii) of this item, as applicable. A small business issuer shall disclose on an aggregated basis in a footnote to the table the information required under paragraph (d)(2)(i) and (ii) of this item with respect to any individual options, warrants or rights assumed in connection with a merger, consolidation or other acquisition transaction. 6. To the extent that the number of securities remaining available for future issuance disclosed in column (c) includes securities available for future issuance under any compensation plan or individual compensation arrangement other than upon the exercise of an option, warrant or right, disclose the number of securities and type of plan separately for each such plan in a footnote to the table. 7. If the description of an equity compensation plan set forth in a small business issuers financial statements contains the disclosure required by paragraph (d)(3) of this item, a cross-reference to such description will satisfy the requirements of paragraph (d)(3) of this item. 8. If an equity compensation plan contains a formula for calculating the number of securities available for issuance under the plan, including, without limitation, a formula that automatically increases the number of securities available for issuance by a percentage of the number of outstanding securities of the small business issuer, a description of this formula shall be disclosed in a footnote to the table. 9. Except where it is part of a document that is incorporated by reference into a prospectus, the information required by this paragraph need not be provided in any registration statement filed under the Securities Act. 3. Section 228.601 is amended by redesignating paragraph (b)(10)(ii)(B) as paragraph (b)(10)(ii)(C) and by adding new paragraph (b)(10)(ii)(B) to read as follows: sect228. 601 (Item 601) Exhibits (b) Description of Exhibits (10) Material Contracts (B) Any compensatory plan, contract or arrangement adopted without the approval of security holders pursuant to which equity may be awarded, including, but not limited to, options, warrants or rights (or if not set forth in any formal document, a written description thereof), in which any employee (whether or not an executive officer of the small business issuer) participates shall be filed unless immaterial in amount or significance. A compensation plan assumed by a small business issuer in connection with a merger, consolidation or other acquisition transaction pursuant to which the small business issuer may make further grants or awards of its equity securities shall be considered a compensation plan of the small business issuer for purposes of the preceding sentence. PART 229 - STANDARD INSTRUCTIONS FOR FILING FORMS UNDER SECURITIES ACT OF 1933, SECURITIES EXCHANGE ACT OF 1934 AND ENERGY POLICY AND CONSERVATION ACT OF 1975 - REGULATION S-K 4. The general authority citation for Part 229 is revised to read as follows: Authority . 15 U. S.C. 77e, 77f, 77g, 77h, 77j, 77k, 77s, 77z-2, 77aa(25), 77aa(26), 77ddd, 77eee, 77ggg, 77hhh, 77iii, 77jjj, 77nnn, 77sss, 78c, 78i, 78j, 78 l . 78m, 78n, 78o, 78u-5, 78w, 78 ll (d), 79e, 79n, 79t, 80a-8, 80a-29, 80a-30, 80a-31(c), 80a-37, 80a-38(a), and 80b-11, unless otherwise noted. 5. The authority citation following sect229.201 is removed. 6. Section 229.201 is amended by adding paragraph (d) before the Instructions to Item 201 to read as follows: sect229.201 (Item 201) Market price of and dividends on the registrants common equity and related stockholder matters. (d) Securities authorized for issuance under equity compensation plans . (1) In the following tabular format, provide the information specified in paragraph (d)(2) of this Item as of the end of the most recently completed fiscal year with respect to compensation plans (including individual compensation arrangements) under which equity securities of the registrant are authorized for issuance, aggregated as follows: (i) All compensation plans previously approved by security holders and (ii) All compensation plans not previously approved by security holders. Equity Compensation Plan Information Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by security holders (2) The table shall include the following information as of the end of the most recently completed fiscal year for each category of equity compensation plan described in paragraph (d)(1) of this Item: (i) The number of securities to be issued upon the exercise of outstanding options, warrants and rights (column (a)) (ii) The weighted-average exercise price of the outstanding options, warrants and rights disclosed pursuant to paragraph (d)(2)(i) of this Item (column (b)) and (iii) Other than securities to be issued upon the exercise of the outstanding options, warrants and rights disclosed in p aragraph (d)(2)(i) of this Item, the number of securities remaining available for future issuance under the plan (column (c)). (3) For each compensation plan under which equity securities of the registrant are authorized for issuance that was adopted without the approval of security holders, describe briefly, in narrative form, the material features of the plan. Instructions to Paragraph (d). 1. Disclosure shall be provided with respect to any compensation plan and individual compensation arrangement of the registrant (or parent, subsidiary or affiliate of the registrant) under which equity securities of the registrant are authorized for issuance to employees or non-employees (such as directors, consultants, advisors, vendors, customers, suppliers or lenders) in exchange for consideration in the form of goods or services as described in Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation . or any successor standard. No disclosure is required with respect to (i) any plan, contract or arrangement for the issuance of warrants or rights to all security holders of the registrant as such on a pro rata basis (such as a stock rights offering) or (ii) any employee benefit plan that is intended to meet the qualification requirements of Section 401(a) of the Internal Revenue Code (26 U. S.C. sect401(a)). 2. For purposes of this paragraph, an quotindividual compensation arrangementquot includes, but is not limited to, the following: a written compensation contract within the meaning of quotemployee benefit planquot under sect230.405 of this chapter and a plan (whether or not set forth in any formal document) applicable to one person as provided under Item 402(a)(7)(ii) of Regulation S-K (sect229.402(a)(7)(ii)). 3. If more than one class of equity security is issued under its equity compensation plans, a registrant should aggregate plan information for each class of security. 4. A registrant may aggregate information regarding individual compensation arrangements with the plan information required under paragraph (d)(1)(i) and (ii) of this item, as applicable. 5. A registrant may aggregate information regarding a compensation plan assumed in connection with a merger, consolidation or other acquisition transaction pursuant to which the registrant may make subsequent grants or awards of its equity securities with the plan information required under paragraph (d)(1)(i) and (ii) of this item, as applicable. A registrant shall disclose on an aggregated basis in a footnote to the table the information required under paragraph (d)(2)(i) and (ii) of this item with respect to any individual options, warrants or rights assumed in connection with a merger, consolidation or other acquisition transaction. 6. To the extent that the number of securities remaining available for future issuance disclosed in column (c) includes securities available for future issuance under any compensation plan or individual compensation arrangement other than upon the exercise of an option, warrant or right, disclose the number of securities and type of plan separately for each such plan in a footnote to the table. 7. If the description of an equity compensation plan set forth in a registrants financial statements contains the disclosure required by paragraph (d)(3) of this item, a cross-reference to such description will satisfy the requirements of paragraph (d)(3) of this item. 8. If an equity compensation plan contains a formula for calculating the number of securities available for issuance under the plan, including, without limitation, a formula that automatically increases the number of securities available for issuance by a percentage of the number of outstanding securities of the registrant, a description of this formula shall be disclosed in a footnote to the table. 9. Except where it is part of a document that is incorporated by reference into a prospectus, the information required by this paragraph need not be provided in any registration statement filed under the Securities Act. 7. Section 229.601 is amended by redesignating paragraph (b)(10)(iii)(B) as paragraph (b)(10)(iii)(C) and by adding new paragraph (b)(10)(iii)(B) to read as follows: sect229. 601 (Item 601) Exhibits (b) Description of Exhibits (10) Material Contracts (B) Any compensatory plan, contract or arrangement adopted without the approval of security holders pursuant to which equity may be awarded, including, but not limited to, options, warrants or rights (or if not set forth in any formal document, a written description thereof), in which any employee (whether or not an executive officer of the registrant) participates shall be filed unless immaterial in amount or significance. A compensation plan assumed by a registrant in connection with a merger, consolidation or other acquisition transaction pursuant to which the registrant may make further grants or awards of its equity securities shall be considered a compensation plan of the registrant for purposes of the preceding sentence. PART 240 - GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934 8. The general authority citation for Part 240 is revised to read, in part, as follows: Authority . 15 U. S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77z-3, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i, 78j, 78j-1, 78k, 78k-1, 78 l . 78m, 78n, 78o, 78p, 78q, 78s, 78u-5, 78w, 78x, 78 ll . 78mm, 79q, 79t, 80a-20, 80a-23, 80a-29, 80a-37, 80b-3, 80b-4 and 80b-11, unless otherwise noted. 9. The authority citation following sect240.14a-3 is removed. 10. Section 240.14a-3 is amended by revising paragraph (b)(9) to read as follows: sect240.14a-3 Information to be furnished to security holders. (9) The report shall contain the market price of and dividends on the registrants common equity and related security holder matters required by Item 201(a), (b) and (c) of Regulation S-K (sect229.201(a), (b) and (c) of this chapter). 11. In Section 240.14a-101 amend Item 10 of Schedule 14A by adding paragraph (c) before the undesignated heading Instructions and revise Item 14(d)(4) of Schedule 14A to read as follows: sect240.14a-101 Schedule 14A. Information required in proxy statement. Item 10. Compensation Plans. (c) Information regarding plans and other arrangements not subject to security holder action. Furnish the information required by Item 201(d) of Regulation S-K (sect229.201(d) of this chapter). Instructions to paragraph (c). 1. If action is to be taken as described in paragraph (a) of this Item with respect to the approval of a new compensation plan under which equity securities of the registrant are authorized for issuance, information about the plan shall be disclosed as required under paragraphs (a) and (b) of this Item and shall not be included in the disclosure required by Item 201(d) of Regulation S-K (sect229.201(d) of this chapter). If action is to be taken as described in paragraph (a) of this Item with respect to the amendment or modification of an existing plan under which equity securities of the registrant are authorized for issuance, the registrant shall include information about securities previously authorized for issuance under the plan (including any outstanding options, warrants and rights previously granted pursuant to the plan and any securities remaining available for future issuance under the plan) in the disclosure required by Item 201(d) of Regulation S-K (sect229.201(d) of this chapter). Any additional securities that are the subject of the amendments or modification of the existing plan shall be disclosed as required under paragraphs (a) and (b) of this Item and shall not be included in the Item 201(d) disclosure. Item 14. Mergers, consolidations, acquisitions and similar matters. (d) Information about parties to the transaction: registered investment companies and business development companies. (4) Information required by Item 201(a), (b) and (c) of Regulation S-K (sect229.201(a), (b) and (c) of this chapter), market price of and dividends on the registrants common equity and related stockholder matters PART 249 - FORMS, SECURITIES EXCHANGE ACT OF 1934 12. The authority citation for Part 249 continues to read, in part, as follows: Authority . 15 U. S.C. 78a et seq . unless otherwise noted 13. By amending Form 10-K (referenced in sect249.310) by revising Item 12 of Part III to read as follows: Note - The text of Form 10-K does not, and this amendment will not, appear in the Code of Federal Regulations. Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Furnish the information required by Item 201(d) of Regulation S-K (sect229.201(d) of this chapter) and by Item 403 of Regulation S-K (sect229.403 of this chapter). 12. By amending Form 10-KSB (referenced in sect249.310b) by revising Item 11 of Part III to read as follows: Note - The text of Form 10-KSB does not, and this amendment will not, appear in the Code of Federal Regulations. Item 11. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Furnish the information required by Item 201(d) of Regulation S-B and by Item 403 of Regulation S-B. By the Commission. Item 1 of Schedule 14C requires that a registrant furnish the information called for by all of the items of Schedule 14A (other than Items 1(c), 2, 4 and 5) which would be applicable to any matter to be acted upon at the meeting if proxies were to be solicited in connection with the meeting. A study of stock-based pay practices at the nations 200 largest corporations indicates that these companies allocated 15.2 of outstanding shares (calculated on a fully-diluted basis) for management and employee equity incentives in 2000, compared to only 6.9 in 1989. See Pearl Meyers amp Partners, Inc. 2000 Equity Stake, Study of Management Equity Participation in the Top 200 Corporations (2000). See Eric D. Roiter, The NYSE Wrestles with Shareholder Approval of Stock Option Plans . Corp. Gov. Adv. المجلد. 8, No. 1 (Jan. Feb. 2000), at 1. See also, for example, Justin Fox, The Amazing Stock Option Sleight of Hand . Fortune, June 25, 2001, at 86. In its most recent study, the Investor Responsibility Research Center found that the average potential dilution for the 1,500 companies in the quotSampP Super 1,500quot (the combination of the SampP 500, the SampP MidCap 400 and the SampP SmallCap 600) was 14.6 in 2000, compared to 11.6 in 1997 an increase of approximately 26. The increase was even greater for SampP 500 companies, with average potential dilution rising to 13.1 in 2000, compared to 9.2 in 1995. See Investor Responsibility Research Center, Potential Dilution - 2000, The Potential Dilution from Stock Plans at the SampP Super 1,500 Companies (2000) (the quotIRRC Dilution Studyquot). The amendments were proposed in Release No. 33-7944 (Jan. 26, 2001) 66 FR 8732 (the quotProposing Releasequot). The commenters included 11 individual and institutional investors, eight registrants and registrant associations (one registrant submitted two letters), one self-regulatory organization and 10 members of the executive compensation consulting, accounting and legal communities. These comment letters and a summary of comments prepared by our staff are available for public inspection and copying in our Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549, in File No. S7-04-01. Public comments submitted electronically and the summary of comments are available on our website sec. gov . The discussion of Form 10-K in this release also includes Form 10-KSB. The discussion of proxy statements in this release also includes Schedule 14C information statements. To help investors better understand equity compensation, our Office of Investor Education and Assistance will create educational materials about the available disclosure on equity compensation programs (including the information available in financial statements). See, for example, the Letter dated March 26, 2001 from the Council of Institutional Investors (the quotCII Letterquot), the Letter dated April 24, 2001 from the Association for Investment Management and Research and the Letter dated April 16, 2001 from the Association of the Bar of the City of New York (the quotNYC Bar Letterquot). While the impact of outstanding options, warrants and rights is contained in the presentation of diluted earnings-per-share required by Statement of Financial Accounting Standards No. 128, Earnings-Per-Share (Feb. 1997) (quotSFAS 128quot), this disclosure does not necessarily isolate quotcompensatoryquot instruments. Typically, the diluted earnings-per-share figure combines the dilutive effect of compensatory options, warrants and rights with that of other outstanding convertible securities. See new Item 201(d)(2)(ii) of Regulation S-B 17 CFR 228.201(d)(2)(ii) and new Item 201(d)(2)(ii) of Regulation S-K 17 CFR 229.201(d)(2)(ii). This weighted-average exercise price information may be different from that contained in a registrants financial statements as required by Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation (Oct. 1995) (quotSFAS 123quot) because the information includes grants and awards to non-employees while the information required by SFAS 123 may not. See n. 55 below. This includes any equity compensation plan that provides for grants and awards to employees or non-employees in exchange for consideration in the form of goods or services as described in SFAS 123. For purposes of the amendments, we consider an equity compensation plan to be in effect as long as securities remain available for future issuance under the plan, or as long as options, warrants or rights previously granted under the plan remain outstanding. Disclosure is required without regard to whether participants are employees (including officers) or non-employees (such as directors, consultants, advisors, vendors, customers, suppliers or lenders). See, for example, the Letter dated May 7, 2001 from the American Bar Association (the quotABA Letterquot), the Letter dated April 2, 2001 from Lucent Technologies Inc. and the Letter dated May 22, 2001 from the New York State Bar Association (the quotNY State Bar Letterquot). One commenter estimated that, based upon the number of equity compensation plans it administers, compliance could cost an additional 300,000 annually for printing and distribution. See the Letter dated April 9, 2001 from Lucent Technologies Inc. (the quotSecond Lucent Letterquot). See the Letter dated February 27, 2001 from Intel Corporation (the quotIntel Letterquot). In addition, information on the number and identity of a registrants equity compensation plans should be available in the footnotes to the registrants financial statements as part of its required SFAS 123 disclosure. See paragraph 46 of SFAS 123. See new Item 201(d)(1) of Regulation S-B 17 CFR 228.201(d)(1) and new Item 201(d)(1) of Regulation S-K 17 CFR 229.201(d)(1). These plans otherwise are subject to the disclosure requirements of Item 10 of Schedule 14A. Item 10 requires a description of the material features of, and tabular disclosure of the benefits receivable or allocable under, the plan being acted upon, as well as additional information regarding specific types of plans. See, for example, the CII Letter, the Letter dated March 28, 2001 from the State of Wisconsin Investment Board (the quotSWIB Letterquot) and the Letter dated March 29, 2001 from the Teachers Insurance and Annuity Association - College Retirement Equities Fund (the quotTIAA-CREF Letterquot). See Instruction 1 to new Item 10(c) of Schedule 14A. For these purposes, an individual equity compensation arrangement includes a quotplanquot for a single person as defined by Item 402(a)(7)(ii) of Regulation S-K 17 CFR 229.402(a)(7)(ii) (quotA plan may be applicable to one person. quot), as well as an individual quotwritten compensation contractquot (see, for example, the Securities Act Rule 405 17 CFR 230.405 definition of the term quotemployee benefit planquot). See, for example, the NY State Bar Letter and the TIAA-CREF letter. See Report of the New York Stock Exchange Special Task Force on Stockholder Approval Policy (Oct. 1999) (the quotNYSE Task Force Reportquot), at 14, available at nysepdfspolicy. pdf . While SFAS 123 requires an entity to provide a description of each stock-based compensation plan, these descriptions need not indicate whether a plan has been approved by security holders. See paragraphs 46 and 362 of SFAS 123. Paragraph 46 of SFAS 123 provides for disclosure of the number of shares authorized for grants of options or other equity instruments pursuant to stock-based compensation plans. It does not specifically require disclosure of the current number of authorized shares available for grant. In addition, it may be difficult for investors to determine this number. Currently, a registrant submitting an equity compensation plan for security holder action need not provide any specific disclosure about its other equity compensation plans. In its annual study on stock plan dilution, the Investor Responsibility Research Center found that approximately 22 of the companies surveyed did not disclose the number of shares available for future issuance under their employee stock plans. See the IRRC Dilution Study. Paragraph 46 of SFAS 123 provides that quotan entity that uses equity instruments to acquire goods or services other than employee services shall provide disclosures similar to those required for employee transactions to the extent that those disclosures are important in understanding the effects of those transactions on the financial statementsquot (emphasis added). Consequently, a registrant has discretion to exclude non-employee grants and awards of equity instruments from its SFAS 123 disclosure. In addition, registrants need not apply the disclosure provisions of SFAS 123 to immaterial items, as determined based on a registrants particular circumstances. See paragraph 244 of SFAS 123. See, for example, the NYSE Task Force Report, n. 52 above, at 14 (quotThe requisite information to make dilution calculations is not consistently available in any one place or format in corporate disclosure documents. ), the Letter dated April 2, 2001 from the Association of Publicly Traded Companies (quotthe sheer volume and complexity of most corporate compensation proposals, coupled with stock option plans, makes it difficult for the average investor to interpret and effectively utilize the information provided. quot) and the TIAA-CREF Letter (quotlack of transparency. limits the ability of shareholders. to protect themselves against plans that can be highly dilutive. quot). See the Proposing Release at n. 17. This table does not describe all of the information that registrants must disclose under SFAS 123. In the Proposing Release, we also sought comment as to whether the table should be required in registration statements filed under the Securities Act of 1933 15 U. S.C. sectsect77a et seq .. While no commenter favored a blanket requirement for all registration statements, two commenters suggested that registrants include the table in registration statements filed in connection with initial public offerings. See the NYC Bar Letter and the NY State Bar Letter. Two commenters expressly opposed a registration statement disclosure requirement. See the ABA Letter and the Letter dated June 11, 2001 from the New York Stock Exchange (the quotNYSE Letterquot). Generally, registrants already include information about the possible effects of future sales of securities, including outstanding options, in registration statements for initial public offerings to the extent that this information is material. Item 506 of Regulation S-K 17 CFR 229.506 requires specific information in a registration statement filed in connection with an initial public offering about dilution, as well as with respect to common equity securities that have been acquired by officers and directors. In addition, Item 201(a)(2) of Regulation S-K 17 CFR 229.201(a)(2) requires disclosure of the amount of common equity that is subject to outstanding options or warrants. Further information is available pursuant to the disclosure required by Item 402 of Regulation S-K. Accordingly, except where the table is part of an annual report on Form 10-K or 10-KSB that is incorporated by reference into a prospectus, we are not extending the disclosure requirements to registration statements at this time. See Instruction 10 to new Item 201(d) of Regulation S-B and Instruction 10 to new Item 201(d) of Regulation S-K. See, for example, the ABA Letter, the CII Letter and the SWIB Letter. See, for example, the Letter dated March 29, 2001 from Ernst ampYoung LLP, the Second Lucent Letter and the NYC Bar Letter. 15 U. S.C. sect78o(d). Some commenters argued that even where a registrant is not submitting a compensation plan for security holder action, the new disclosure contains relevant information with respect to the backgrounds and compensation of directors and executive officers that should be available for evaluation in connection with the election of directors. In general, we find the relevance of the new disclosure to be somewhat attenuated from decisions regarding the election of directors. Moreover, there would be little connection when a nominee has not served previously as a director of the registrant. Finally, the relevance of the new disclosure to decisions concerning the remuneration of directors and officers also is questionable because the table requires general information that does not specifically identify director and executive officer awards. Registrants are required, however, to provide security holders with an annual report to security holders pursuant to Exchange Act Rule 14a-3(b) 17 CFR 240.14a-3(b) when soliciting proxies in connection with an annual meeting of security holders at which directors are to be elected. Typically, this annual report to security holders includes the financial statements of the registrant, including the required SFAS 123 disclosure. In some instances, registrants use their annual report on Form 10-K to satisfy this delivery requirement. See Exchange Act Rule 14a-3(d) 17 CFR 240.14a-3(d). Under Exchange Act Rule 14a-3(b)(10) 17 CFR 240.14a-3(b)(10), a registrant must include in its proxy statement or annual report an undertaking to provide without charge to each security holder solicited, upon written request, a copy of the registrants annual report on Form 10-K. Once filed, the annual report on Form 10-K also is available via our Electronic Data Gathering, Analysis and Retrieval, or EDGAR, system. Another possible location for the table is the annual report to security holders required by Exchange Act Rule 14a-3(b). This alternative has several drawbacks, however. First, because it is not considered a quotfiledquot document, the annual report is not subject to the express civil liability provisions of Section 18 of the Exchange Act 15 U. S.C. sect78r. See Exchange Act Rule 14a-3(c) 17 CFR 240.14a-3(c). Second, as with proxy statements, the disclosure would not apply to registrants subject to reporting solely under Section 15(d) of the Exchange Act. Finally, because principally financial information is required to be included in the annual report, non-financial disclosure such as the table would appear out of place. See revised Item 12 of Part III of Form 10-K and revised Item 11 of Part III of Form 10-KSB. See new Item 10(c) of Schedule 14A. Proxy or information statement disclosure is triggered by the submission of any compensation plan for security holder action, including cash-only plans. Similar incorporation by reference is permitted with respect to the other disclosure items required by Part III of Form 10-K and 10-KSB. See General Instruction E(3) to Form 10-KSB and General Instruction G(3) to Form 10-K. See Section II. A.4 above. See, for example, the CII Letter, the SWIB Letter and the TIAA-CREF Letter. Other commenters suggested that we require registrants to file copies of all equity compensation plans (whether or not approved by security holders). See the ABA Letter and the NYSE Letter. 17 CFR 229.601(b)(10). 17 CFR 229.601(b)(10)(iii)(A). Nondiscriminatory, broad-based compensatory plans, contracts or arrangements are exempt from this requirement. See Item 601(b)(10)(iii)(B)( 4 ) 17 CFR 229.601(b)(10)(iii)(B)( 4 ). See, for example, the CII Letter and the Letter dated March 29, 2001 from the Office of the State Comptroller of the State of New York. See new Item 601(b)(10)(iii)(B) of Regulation S-B 17 CFR 228.601(b)(10)(iii)(B) and new Item 601(b)(10)(iii)(B) of Regulation S-K 17 CFR 229.601(b)(10)(iii)(B). This is consistent with our action in 1981 amending then-Item 7 of Regulation S-K to reformulate the definition of quotmaterial contractsquot as applied to remunerative plans, contracts or arrangements. See Release No. 33-6287 (Feb. 6, 1981) 46 FR 11952. Previously, we had indicated that remuneration plans in which directors or executive officers of the registrant did not participate generally did not need to be filed as exhibits. See Release No. 33-6230, Section II. A.2.b. i. (Aug. 27, 1980) 45 FR 58822. With respect to an existing non-security holder-approved equity compensation plan subject to new Item 601(b)(10)(iii)(B) of Regulation S-B or new Item 601(b)(10)(iii)(B) of Regulation S-K that is in effect as of the effective date of these amendments and that has not been filed previously, a copy of the plan must be filed as an exhibit to the annual report on Form 10-K or 10-KSB filed by the registrant for its first fiscal year ending on or after March 15, 2002. 44 U. S.C. sect3501 et seq . Publication and submission were in accordance with 44 U. S.C. sect3507(d) and 5 CFR 1320.11. The titles for the collections of information affected by the amendments are (1) quotRegulation 14A (Commission Rules 14a-1 through 14b-2 and Schedule 14A),quot (2) quotRegulation 14C (Commission Rules 14c-1 through 14c-7 and Schedule 14C),quot (3) quotForm 10-K, quot (4) quotForm 10- KSB, quot (5) quotRegulation S-Bquot and (6) quotRegulation S-K. quot The likely respondents subject to the collections of information include entities whose reporting obligations arise under the Exchange Act. The reporting requirements of Section 13 of the Exchange Act 15 U. S.C. sect78m, as well as the proxy disclosure requirements of Section 14 of the Exchange Act, apply to entities that have securities registered under Section 12 of the Exchange Act 15 U. S.C. sect78 l . The reporting requirements of Section 15(d) of the Exchange Act apply to entities with effective registration statements under the Securities Act that are not otherwise subject to the registration requirements of Section 12 of the Exchange Act. See the Letter dated April 17, 2001 from the American Institute of Certified Public Accountants (the quotAICPA Letterquot), the Letter dated April 2, 2001 from the Association of Publicly-Traded Companies (the quotAPTC Letterquot), the Letter dated April 2, 2001 from Lucent Technologies Inc. (the quotFirst Lucent Letterquot), the Letter dated May 22, 2001 from the New York State Bar Association, the Letter dated August 17, 2001 from Leonard S. Stein (the quotStein Letterquot) and the Letter dated August 26, 2001 from Hendrick Vater. See the Letter dated April 9, 2001 from Lucent Technologies Inc. See the APTC Letter. See the Stein Letter. We have changed our assumption about the number of registrants with equity compensation plans that, in any year, either adopt a new plan or amend an existing plan to increase the number of securities authorized for issuance under the plan. In the Proposing Release, we estimated that 50 of the registrants with equity compensation plans would either adopt a new plan or amend an existing plan each year. Based on the available survey data, we have revised this assumption to 30. See n. 91 below. This estimate is made after a review of available survey data, which varies widely. For example, in its most recent study of the quotSampP Super 1,500quot (the combination of the SampP 500, the SampP MidCap 400 and the SampP SmallCap 600), the Investor Responsibility Research Center determined that, of the 1,157 companies examined, 1,142 (98.7) awarded equity to some portion of their employees. See Investor Responsibility Research Center, Potential Dilution - 2000, The Potential Dilution from Stock Plans at the SampP Super 1,500 Companies (2000). In contrast, a Pilot Survey conducted by the Bureau of Labor Statistics in 1999 determined that 22 of publicly-held companies offered stock options to their employees. This survey sampled 2,100 quotestablishments, quot of which approximately 1 in 10 were publicly-held companies. See Bureau of Labor Statistics, Pilot Survey on the Incidence of Stock Options in Private Industry in 1999 . (Oct. 11, 2000), available at bls. govncsocsspncnr0001.txt. Further, in the Proposing Release we sought comment as to whether our estimates of the burden of the proposed collections of information were accurate. We received no comment letters responding to that request. Because of variations in the available data, we also have estimated the reporting and cost burdens for the proposed collections of information assuming that 98 of the registrants that file annual reports on Form 10-K or 10-KSB maintain an equity compensation plan and are subject to the required disclosure. See nn. 108 and 110 below. Based on the actual number of registrants filing annual reports on Form 10-K and 10-KSB, we estimate that 6,229 registrants that file on Form 10-K (10,381 times 60) maintain equity compensation plans (quotForm 10-K Filersquot) and 2,185 registrants that file on Form 10-KSB (3,641 times 60) maintain equity compensation plans (quotForm 10-KSB Filersquot). In the Proposing Release, we estimated that this figure was 25. The available survey data does not appear to be representative of the general registrant population. See William M. Mercer, Inc. Equity Compensation Survey (2001) (48 of survey respondents (83 participants) maintained non-security holder-approved stock option plans for employees below management level 60 of such plans most prevalent in large companies (more than 5,000 employees)) iQuantic, Inc. Trends in Equity Compensation 1996-2000 (2000) (27.3 of survey respondents in 1999 (161 participants) maintained non-security holder-approved stock option plans, compared to 3.2 before 1996). After discussions with several compensation professionals, we reduced our estimate to 20. We estimate that of the Form 10-K Filers, 1,246 (6,229 times 20) maintain a non-security holder-approved equity compensation plan (quotForm 10-K Filers with Non-Approved Plansquot) and 4,983 (6,229 times 80) do not (quotForm 10-K Filers with Only Approved Plansquot). We estimate that of the Form 10-KSB Filers, 437 (2,185 times 20) maintain a non-security holder-approved equity compensation plan (quotForm 10-KSB Filers with Non-Approved Plansquot) and 1,748 (2,185 times 80) do not (quotForm 10-KSB Filers with Only Approved Plansquot). This estimate is based on a review of available survey data. In its most recent study, the Investor Responsibility Research Center determined that, of 1,157 companies studied in calendar year 2000, 337 (29) presented proposals for new or amended equity compensation plans to security holders. See Investor Responsibility Research Center, Potential Dilution - 2000, The Potential Dilution from Stock Plans at the SampP Super 1,500 Companies (2000). In its most recent study, Pearl Meyers amp Partners found that new plan authorizations among the top 200 companies were submitted by 58 companies in 2000 (29). See Pearl Meyers amp Partners, Inc. 2000 Equity Stake, Study of Management Equity Participation in the Top 200 Corporations (2000). We estimate that of the Form 10-K Filers with Only Approved Plans, 1,495 (4,983 times 30) submit a new or amended equity compensation plan for security holder approval annually (quotForm 10-K Filers with Only Approved Plans Subject to Section 14quot) and of the Form 10-K Filers with Non-Approved Plans, 374 (1,246 times 30) submit a new or amended equity compensation plan for security holder approval annually (quotForm 10-K Filers with Non-Approved Plans Subject to Section 14quot). Similarly, we estimate that of the Form 10-KSB Filers with Only Approved Plans, 524 (1,748 times 30) submit a new or amended equity compensation plan for security holder approval annually (quotForm 10-KSB Filers with Only Approved Plans Subject to Section 14quot) and of the Form 10-KSB Filers with Non-Approved Plans, 131 (437 times 30) submit a new or amended equity compensation plan for security holder approval annually (quotForm 10-KSB Filers with Non-Approved Plans Subject to Section 14quot). This estimate is based on a comparison of the actual number of registrants filing annual reports on Form 10-K or 10-KSB during the 2000 fiscal year (10,381 3,641 14,022) with the actual number of registrants filing proxy or information statements during the 2000 fiscal year (9,892 253 10,145), or 10,14514,022. Thus, we have subtracted 419 registrants (1,495 times 28) from the group of Form 10-K Filers with Only Approved Plans Subject to Section 14, 105 registrants (374 times 28) from the group of Form 10-K Filers with Non-Approved Plans Subject to Section 14, 147 registrants (524 times 28) from the group of Form 10-KSB Filers with Only Approved Plans Subject to Section 14 and 37 registrants (131 times 28) from the group of Form 10-KSB Filers with Non-Approved Plans Subject to Section 14. This estimate is based on a comparison of the actual number of registrants filing proxy statements during the 2000 fiscal year (9,982) with the actual number of registrants filing information statements during the same period (253), or 9,98210,145. Thus, we estimate that of the 1,076 Form 10-K Filers with Only Approved Plans Subject to Section 14, 1,054 (1,076 times 98) will file proxy statements and 22 will file information statements, of the 269 Form 10-K Filers with Non-Approved Plans Subject to Section 14, 264 (269 times 98) will file proxy statements and five will file information statements, of the 377 Form 10-KSB Filers with Only Approved Plans Subject to Section 14, 369 (377 times 98) will file proxy statements and eight will file information statements and of the 94 Form 10-KSB Filers with Non-Approved Plans Subject to Section 14, 92 (94 times 98) will file proxy statements and two will file information statements. Even though we have streamlined compliance in order to reduce the burden on registrants, we have not reduced the number of estimated burden hours to prepare the required disclosure. This decision is in response to comments that our initial burden hour estimate was too low. See the AICPA Letter and the First Lucent Letter. We estimate that registrants will prepare 50 of the required disclosure and outside counsel will prepare the remaining 50. Accordingly, this estimate reflects the addition of one burden hour to prepare the required tabular disclosure. See n. 97 above and the accompanying text. We estimate that registrants will prepare 50 of the required disclosure and outside counsel will prepare the remaining 50. Accordingly, this estimate reflects the addition of two burden hours to prepare the required tabular and narrative disclosure. See n. 97 above and the accompanying text. We arrived at this estimate by taking the number of Form 10-K Filers (see n. 88 above) and subtracting (a) the number of Form 10-K Filers with Non-Approved Plans (see n. 90 above) and (b) the number of Form 10-K Filers with Only Approved Plans Subject to Section 14 (see nn. 92 and 94 above), or (6,229 - 1,246 - 1,076). We arrived at this estimate by taking the number of Form 10-K Filers with Non-Approved Plans (see n. 90 above) and subtracting the number of Form 10-K Filers with Non-Approved Plans Subject to Section 14 (see nn. 92 and 94 above), or (1,246 - 269). We arrived at this estimate by taking the number of Form 10-KSB Filers (see n. 88 above) and subtracting (a) the number of Form 10-KSB Filers with Non-Approved Plans (see n. 90 above) and (b) the number of Form 10-KSB Filers with Only Approved Plans Subject to Section 14 (see nn. 92 and 94 above), or (2,185 - 437 - 377). We arrived at this estimate by taking the number of Form 10-KSB Filers with Non-Approved Plans (see n. 90 above) and subtracting the number of Form 10-KSB Filers with Non-Approved Plans Subject to Section 14 (see nn. 92 and 94 above), or (437 - 94). We arrived at this estimate by taking the number of Form 10-K Filers with Only Approved Plans Subject to Section 14 that will file proxy statements and adding the number of Form 10-KSB Filers with Only Approved Plans Subject to Section 14 that will file proxy statements (see n. 96 above), or (1,054 369). We arrived at this estimate by taking the number of Form 10-K Filers with Non-Approved Plans Subject to Section 14 that will file proxy statements and adding the number of Form 10-KSB Filers with Non-Approved Plans Subject to Section 14 that will file proxy statements (see n. 96 above), or (264 92). We arrived at this estimate by taking the number of Form 10-K Filers with Only Approved Plans Subject to Section 14 that will file information statements and adding the number of Form 10-KSB Filers with Only Approved Plans Subject to Section 14 that will file information statements (see n. 96 above), or (22 8). We arrived at this estimate by taking the number of Form 10-K Filers with Non-Approved Plans Subject to Section 14 that will file information statements and adding the number of Form 10-KSB Filers with Non-Approved Plans Subject to Section 14 that will file information statements (see n. 96 above), or (5 2). Assuming that 98 of the registrants that file annual reports on Form 10-K or 10-KSB maintain an equity compensation plan and are subject to the required disclosure, the estimated burden hours per year resulting from the amendments would be 16,511 hours, increasing this estimate to 5,735,343 hours. One-half of the total burden resulting from the amendments is reflected as burden hours and the remainder is reflected in the total cost of complying with the information collection requirements. We have used an estimated hourly rate of 300.00 to determine the estimated cost to respondents of the disclosure prepared by outside counsel. We arrived at this hourly rate estimate after consulting with several private law firms. These cost burden increases reflect a change in our assumption of the number of registrants with equity compensation plans that either adopt a new plan or amend an existing plan to increase the number of securities authorized for issuance under the plan (see n. 85 above) and a change in the estimated hourly rate of outside counsel. With respect to Forms 10-K and 10-KSB, we increased our estimate by 937,300 in the case of Form 10-K and increased our estimate by 483,100 in the case of Form 10-KSB. With respect to Schedules 14A and 14C, we decreased our estimate by 8,089,500 in the case of Schedule 14A and decreased our estimate by 209,800 in the case of Schedule 14C. Assuming that 98 of the registrants that file annual reports on Form 10-K or 10-KSB maintain an equity compensation plan and are subject to the required disclosure, the estimated cost burden per year resulting from the amendments would be 4,946,400. Comments are requested pursuant to 44 U. S.C. sect3506(c)(2)(B). A study of stock-based pay practices at the nations 200 largest corporations indicates that these companies allocated 15.2 of outstanding shares (calculated on a fully-diluted basis) for management and employee equity incentives in 2000, compared to only 6.9 in 1989. See Pearl Meyers amp Partners, Inc. 2000 Equity Stake, Study of Management Equity Participation in the Top 200 Corporations (2000). Both the size of individual awards and the number of companies that use equity broadly throughout the organization have increased significantly. See Core, Guay and Larcker, Executive Equity Compensation and Incentives: A Survey . Working Paper, University of Pennsylvania (2001), at 5-7. This question should be considered in the context of any open market stock repurchase program that has been instituted by a registrant. Repurchases by its own securities by a registrant under such a program may mitigate the dilutive effects of the registrants equity compensation program. There is evidence that companies with high levels of dilution earn lower market-adjusted returns in future periods than companies with comparatively lower levels of dilution. See Garvey and Milbourn, Do Stock Prices Incorporate the Potential Dilution of Employee Stock Options . Working Paper, Claremont Graduate University amp Washington University in St. Louis (2001), at 2-3. But see Core, Guay and Larcker, Executive Equity Compensation and Incentives: A Survey . Working Paper, University of Pennsylvania (2001) (discussing the difficulty in documenting a relationship between equity compensation and corporate performance). See Release No. 34-41479 (June 4, 1999) 64 FR 31667 (under NYSE listing standards, security holder approval not required if plan is quotbroadly-basedquot that is, at least a majority of the registrants full-time employees are eligible to participate and at least a majority of the shares underlying options actually granted are to employees who are not officers or directors) Release No. 34-37260 (May 31, 1996) 61 FR 30376 (security holder approval requirement of Exchange Act Rule 16b-3 17 CFR 240.16b-3 eliminated). See also the Proposing Release at n. 21. According to the Investor Responsibility Research Center, the average negative vote on stock option plans submitted for security holder action in 2000 was 20.7, up from 17.4 in 1997. In addition, in 2000 a relatively large number of stock plan proposals were rejected. See Investor Responsibility Research Center, Potential Dilution - 2000, The Potential Dilution from Stock Plans at the SampP Super 1,500 Companies (2000) (the quotIRRC Dilution Studyquot). See Gillan, Option-based Compensation: Panacea or Pandoras Box . Journal of Applied Corporate Finance (2001) 115-128. Our rules require proxy statement disclosure of the material features of a compensation plan being submitted for security holder action. See Item 10(a)(1) of Schedule 14A. This disclosure does not reach a plan that is never submitted for security holder action. While Item 402(c) of Regulation S-B 17 CFR 228.402(c) and Item 402(c) of Regulation S-K 17 CFR 229.402(c) require disclosure of the number of stock options granted during the last fiscal year, this disclosure only covers the named executive officers of the registrant (as defined in the item). See also Item 402(b)(2)(iv)(B) of Regulation S-B 17 CFR 228.402(b)(2)(iv)(B) and Item 402(b)(2)(iv)(B) of Regulation S-K 17 CFR 229.402(b)(2)(iv)(B). Although financial reporting disclosure requirements concerning stock-based compensation are extensive, they do not require the identification of non-security holder-approved equity compensation plans. See paragraph 46 of Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation (Oct. 1995) (quotSFAS 123quot). Given its recent comprehensive project on accounting for stock-based compensation and its current lengthy agenda, it is not expected that the FASB will revisit this subject in the immediate future. Thus, it is unlikely that the FASB could address this matter through a technical enhancement of its disclosure requirements in the near term. See the Proposing Release at n. 17. See also the Letter dated October 16, 2001 from Sarah A. B. Teslik, Executive Director, Council of Institutional Investors to Jonathan G. Katz. Certain equity awards, such as stock bonuses and restricted stock purchases for a nominal price, may, in some situations, be more dilutive from an economic standpoint than options, warrants and rights. While the amendments apply to all types of equity compensation, for two reasons our discussion focuses primarily on stock options. First, they represent the most popular form of equity compensation used today. It is estimated that more than 80 of the securities reserved for conversion and exercise by U. S. registrants relate to stock options. See Huson, Scott and Wier, Earnings Dilution and the Explanatory Power of Earnings for Returns . The Accounting Review (2001). Second, most alternative forms of equity compensation involve issued securities. Consequently, their dilutive effect may already have occurred and is likely to be reflected in the basic earnings-per-share computation and security holders equity data. These commenters included seven individual and institutional investors, four registrants and registrant associations, one self-regulatory organization and 10 members of the executive compensation consulting, accounting and legal communities. See, for example, the Letter dated April 2, 2001 from Arthur Andersen LLP (the quotAA Letterquot), the Letter dated April 17, 2001 from the American Institute of Certified Public Accountants (the quotAICPA Letterquot), the Letter dated March 29, 2001 from Emerson Electric Co. the Letter dated April 12, 2001 from Microsoft Corporation and the Letter dated April 2, 2001 from PricewaterhouseCoopers LLP (the quotPWC Letterquot). See, for example, the Letter dated March 29, 2001 from Ernst amp Young LLP and the Letter dated April 2, 2001 from Lucent Technologies Inc. See Section II. C above. Available information on non-security holder-approved stock option plans is sparse. See William M. Mercer, Inc. Equity Compensation Survey (2001) (48 of survey respondents (83 participants) maintained non-security holder-approved stock option plan for employees below management level such plans (60) most prevalent in large companies (more than 5,000 employees) iQuantic, Inc. Trends in Equity Compensation 1996-2000 (2000) (27.3 of survey respondents in 1999 (161 participants) maintained non-security holder-approved stock option plans, compared to 3.2 before 1996). This measure may be formulated in different ways. For purposes of this discussion, quotoverhangquot means the sum of the number of securities underlying outstanding options, warrants and rights plus the number of securities remaining available for future issuance under the registrants existing equity compensation plans, and is often expressed as a percentage of the total number of outstanding securities. It may be difficult for investors to calculate the quotoverhangquot of a registrants equity compensation p rogram because the number of securities available for future issuance under the registrants plans may not be disclosed or apparent. Currently, a registrant submitting an equity compensation plan for security holder action need not provide any specific disclosure about its other equity compensation plans. Moreover, in its annual study on stock plan dilution, the Investor Responsibility Research Center found that approximately 22 of the companies surveyed did not disclose the number of shares available for future issuance under their employee stock plans. See the IRRC Dilution Study. While the full dilutive impact of these authorized but unissued securities cannot be assessed until derivative instruments have been granted and the prices for which the underlying securities may be issued can be compared to existing market values, this information, combined with knowledge of the minimum exercise price at which these instruments may be granted, may provide useful insight into the potential future economic consequences of the program. See, for example, the AA Letter, the AICPA Letter, the Letter dated May 22, 2001 from the New York State Bar Association and the PWC Letter. See the ABA Letter. This estimate is based on the Letter dated April 9, 2001 from Lucent Technologies, Inc. in which the commenter estimated that providing four additional pages of disclosure to its over five million security holders would result in additional printing costs of 100,000 and additional mailing costs of 200,000. Assuming that the required disclosure consists of one additional page and that a registrant has 50,000 security holders, the registrant may incur additional costs of 750 to prepare and distribute the additional disclosure. Since all registrants are required to make the same disclosure, the amendments will impose the same dollar costs on each registrant. Accordingly, for small entities the relative burden of compliance will be higher than for large entities. This figure is based on our estimate that 60 of the actual number of registrants filing annual reports on Form 10-K or 10-KSB (14,022 registrants) maintain equity compensation plans. This estimate is made after a review of available survey data, which varies widely. For example, in its most recent study of the quotSampP Super 1,500quot (the combination of the SampP 500, the SampP MidCap 400 and the SampP SmallCap 600), the Investor Responsibility Research Center determined that, of the 1,157 companies examined, 1,142 (98.7) awarded equity to some portion of their employees. See Investor Responsibility Research Center, Potential Dilution - 2000, The Potential Dilution from Stock Plans at the SampP Super 1,500 Companies (2000). In contrast, a Pilot Survey conducted by the Bureau of Labor Statistics in 1999 determined that 22 of publicly-held companies offered stock options to their employees. This survey sampled 2,100 quotestablishments, quot of which approximately 1 in 10 were publicly-held companies. See Bureau of Labor Statistics, Pilot Survey on the Incidence of Stock Options in Private Industry in 1999 . (Oct. 11, 2000), available at bls. govncsocsspncnr0001.txt. We arrived at this estimate by assuming that approximately 80 of these registrants will be required to provide the tabular disclosure only and 20 of these registrants will be required to describe the material features of their non-security holder-approved plans as well. See n. 90 above and the accompanying text. Thus, 80 of the registrants will incur an average annual outside counsel cost of 300 (80 of 8,400 times 300 2,016,000) while 20 will incur an average annual outside cost of 600 (20 of 8,400 times 600 1,008,000). In addition, we estimate that approximately 365 registrants with non-security holder-approved plans will incur additional printing and distribution costs of 750 each, or 273,750. See n. 135 above. The sum of these amounts averaged over 8,400 registrants equals 393. A recent study of approximately 250 companies conducted by the National Center for Employee Ownership found that 55 of the respondents had less than 200 employees (with 17 having less than 31 employees) and that 55 of the respondents had less than 40 million in annual revenue (with 14 having annual revenues of 1.1 million or less). See National Center for Employee Ownership, An Overview of How Companies are Granting Stock Options (2001). See the Proposing Release at Section V.