As we approach the impending proxy and annual report season, companies should be vigilant of the fact that the SEC has introduced several new elements to the compliance checklist. It is paramount to note that these additions supplement the items highlighted in last year’s list. Furthermore, this review presents a compact overview of a few additional ‘hot topics’ to pay attention to. Bryan Cave Leighton Paisner provides an elaborate discussion on this matter.
The changes that the SEC has introduced have manifested as a direct response to the evolving corporate landscape. Alongside these developments, there are a handful of important issues that corporations should be monitoring.
- Companies should stay informed about any recent changes to the regulations that pertain to climate risk disclosures. As climate change becomes a subject of increasing concern, corporations should be prepared to respond effectively to inquiries from shareholders and the public.
- Another issue that demands attention is diversity in corporate leadership. Diversity and inclusivity has moved from being a social responsibility issue to a business priority. Companies are expected to ensure diversity in their top leadership positions.
- Corporations should also pay close attention to the enforcement actions currently being undertaken by the SEC, as well as any new guidance that emerges.
Given these prevalent issues and the new additions to SEC’s compliance checklist, preparation for the 2024 reporting season should commence well in advance. As companies take the time to strategize their approach, they have the chance to navigate these changes most effectively while meeting regulatory compliance and investor expectations.