Hot Blank-Check Companies Get SEC Scrutiny on Pay Structures (1)

Red-hot blank-check companies are getting scrutiny from the U.S. Securities and Exchange Commission, which wants to ensure investors are receiving appropriate disclosures about insiders’ lucrative pay structures.

SEC Chairman Jay Clayton said Thursday that the regulator is reviewing so-called special purpose acquisition companies -- or SPACs -- because it’s concerned that shareholders don’t fully comprehend how incentives tied to executive pay differ from traditional initial public offerings.

”We have to pay attention to what’s happening in the market and we are paying attention to whether the disclosure here is as it should be,” Clayton said in an interview with ...