The U.S. government regulates executive compensation through several agencies each of which carry out a distinct purpose:
- Department of Labor & ERISA
- Department of the Treasury
- Internal Revenue Service
- Securities and Exchange Commission
Each entity carries out the regulation of executive compensation utilizing distinct methods, including requiring executive compensation disclosures, regulating the tax treatment of executive compensation, and Government Contractor Pay Limits and Disclosures. As part of its efforts to ensure the responsible, board centric regulation of executive compensation, the Center engages with each of these agencies as they implement and conduct their respective regulatory regimens. In addition to the work by agencies, companies need to be aware of other regulatory bodies, namely states and foreign entities, which will also impact executive compensation regulatory and policy creation.