Jeremy Garvey, John Ludlum, and Seth Popick discuss the growing pressures facing corporate fiduciaries responsible for retirement and employee benefit plans in Wolters Kluwer’s Executive Compensation Update. Recent regulatory developments, including the Trump administration’s push to expand access to alternative investments such as private equity and cryptocurrency in 401(k) plans, have created new opportunities but also heightened fiduciary risk. The update emphasizes that Employee Retirement Income Security Act of 1974 (ERISA) fiduciaries must continue to meet strict duties of loyalty, prudence, diversification, and compliance with plan documents, while carefully evaluating investment options, documenting decision-making processes, and monitoring evolving regulatory guidance. With ERISA litigation remaining active and private investments drawing increased scrutiny from plaintiff’s firms, companies are encouraged to provide fiduciary training, maintain strong governance practices, and review fiduciary insurance coverage.

Jeremy, John, and Seth also highlight comments from SEC Chairman Paul Atkins, signaling potential reforms to executive compensation disclosure requirements under Regulation S-K. Atkins advocated for a more materiality-based approach that could simplify disclosures, reduce the number of executives subject to detailed compensation reporting, streamline pay-versus-performance requirements, and modernize rules regarding executive security perquisites. In addition, the publication reviews a recent ISS study showing that CEO perquisites remain widespread and are increasing, particularly security-related benefits and personal aircraft use among large-cap companies. The study found that while perks generally represent a small portion of overall compensation, larger perquisite values are associated with lower shareholder support in say-on-pay votes, underscoring the importance of careful oversight and transparent disclosure.