Bill > HR4571

This bill directs the Securities and Exchange Commission (SEC), the government agency responsible for regulating the securities industry, to update its rules regarding disclosures for compensatory benefit plans, which are arrangements that provide benefits to employees, often in the form of stock options or other equity. Specifically, the SEC must increase the threshold amount from $5,000,000 to $20,000,000 for the aggregate sales price or amount of securities sold within a 12-month period that triggers an additional disclosure requirement for issuers, meaning companies offering these plans. Furthermore, the SEC is required to adjust this new $20,000,000 threshold for inflation every five years, using the Consumer Price Index for All Urban Consumers as published by the Bureau of Labor Statistics, and rounding the adjusted amount to the nearest $1,000,000.