Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Katie Couric Clause

What it is:

A Katie Couric clause was a proposed provision of SEC executive compensation disclosure rules that would have required public companies to disclose compensation paid to several non-executive employees whose total compensation exceeded that of the most highly paid executive officers.

How it works (Example):

The Katie Couric clause is named after former "Today Show" co-host Katie Couric, who, like many media personalities, receive high compensation but are not company officers. Media companies, for this reason, were particularly skeptical of the SEC's 2006 proposal because it would have required them to disclose the compensation packages of their big-ticket personalities.

The SEC did not finalize the rule.

Why it Matters:

The idea behind the SEC's proposal was to get companies to acknowledge that the CEO and other executive officers aren't always the highest paid people in a company. In many companies, for example, salespeople who work on commission can easily out-earn salaried executives in a good year. However, because these salespeople are not officers of the company, their salaries are not disclosed and shareholders may not realize the dependency (or in some cases, liability) companies have to certain people.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...