Upfront: Will Executive Comp Remain Status Quo?

The SEC's new executive compensation disclosure rules, which will take effect with next year's proxy filings, will likely have little impact on executive pay levels, according to a recent poll by Watson Wyatt Worldwide. Only 28 percent of respondents, the majority of whom are corporate human resources and compensation executives, say they expect the rules to decrease executive pay levels, while 54 percent say the new rules will have no effect.

"The new rules may not have a large impact on executive pay levels or corporate performance, but they will strengthen the link between the two," notes Ira Kay, global director of compensation consulting in Watson Wyatt's New York City office. "While executive pay-for-performance programs have generally been working well throughout corporate America, the greater transparency created by the rules should ensure that they continue to do so."

Still, companies aren't planning to change their compensation programs any time soon. Only 5 percent of respondents intend to modify their program; nearly half say they are not planning changes, and 45 percent haven't yet decided.