• The Katie Couric clause was a slang term used to describe a proposed Securities and Exchange Commission rule regarding disclosure of executive compensation and compensation of other elected employees.

  • A rule proposed in 2006 required companies to publicly acknowledge the salaries of up to the three highest paid non-management employees in the company.
  • The rule would have meant that CBS had to disclose the salary of Couric, at the time CBS’ highest paid news anchor.
  • The rule received backlash from major media companies and Wall Street firms and was ultimately not passed.
  • The rule was proposed as an addition to existing executive remuneration laws that require disclosure of compensation information for CEOs and other key executives.
  • Other rules introduced in subsequent years, including the Dodd-Frank Act in 2010, dealt with the issue of executive compensation, which required greater transparency regarding corporate spending.