Should specific disclosure about equity compensation plans that involve the use of repurchased or “treasury” shares be required?
Yes. It is important to know whether the compensation plan is based on a share increase or a share buyback. In case that the transaction is based upon the use of repurchased or “treasury” shares, there is no dilution effect. The disclosure might prevent manipulation or misleading information as well. XII. Lack of clarities within the proposal The SEC proposal “Disclosure of Equity Compensation Plan Information” disposes of different lack of clarities: • The proposal indicates that disclosure for individual arrangements can be aggregated by registrants while disclosures for plans can not be aggregated. A look on the definition of a “plan” shows that a plan “may be applicable to one person”. The proposed rules does not give a definition of an “individual arrangement”. This could mean that a individual arrangement is an arrangement with one individual or rather a single arrangement with one or more individuals. The next question is if an “individual” is definated as a “person” in the defi
