Corporate executives will soon have to publicly disclose their compensation—including retirement benefits and benefits due to dismissal—per a decision announced by the SEC.

The new disclosure rule, which goes into effect in 2007, is meant to address the back-dating and spring-loading of stock options to company leaders. Publicly traded companies will have to report one bottom line number for executives' total compensation.

SEC Chairman Christopher Cox says the measure is not intended to deter companies from granting options, but rather to ensure that investors are aware of the compensation packages being offered. This rule marks the first significant change in executive compensation disclosure rules since 1992.

—Tim Chan