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It is essential for companies to maintain compliance with the latest government regulations regarding corporate governance to protect their investments and reputation. The Securities and Exchange Commission—or the SEC—has adopted a series of amendments to Section 14(i) on August 25, 2022, designed to uphold a balance between the interests of company stakeholders, shareholders, executives, their customers, and the government. These amendments now require registrants to clearly disclose the relationship between the executive compensation that is actually being paid out and the financial performance of the registrant over the course of the applicable time period for disclosure.
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