Katie Couric Clause

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Definition: Katie Couric Clause

It is a clause present in USA only. It is sort of slang term given for a controversial clause proposed from a Securities and Exchange Commission (Also known as SEC) rule also known as the Executive compensation and related party disclosure. The name of the clause was given by the case referring to “Today Show” host Katie Couric. The Clause if implemented would require/ensure that all publicly traded companies that are registered on the SEC, to disclose salaries of all its employees.

This clause would ensure that not only top executives’ salaries are disclosed but also all of non earning executives like actors (who worked with them on advertisements), director (who would have directed its ad films) and also TV news anchors.

The clause got its name actually from a former TV show “Today Show” host Katie Couric, who at that time had become the highest paid TV newsroom anchor with a reportedly huge salary. So this huge salary caused a huge uproar among the shareholders of the company and the SEC decided to implement this clause. But many major entertainment companies in USA like the CBS,NBC and Walt Disney Co., opposed this controversial clause , as most of media giants offer are reluctant to disclose the salary of their anchors and actors to shareholders. AS per current SEC rule only salaries of top five executives in publicly traded companies have to be disclosed. But after the implementation of this new clause, the company has to disclose salary of any three non executive employees whose salary exceeds those of the top five managers. So this rule would ensure a greater transparency while formulating salaries of non executives.



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