Under which act must companies disclose executive compensation?

The correct choice is the Securities Exchange Act, which requires public companies to disclose executive compensation as part of their obligation to provide transparent financial information to shareholders and potential investors. This act mandates that companies file periodic reports, including details about executive pay, to ensure that investors have access to material information concerning the financial health of the company. This disclosure is crucial for maintaining trust and confidence in the financial markets, as investors rely on this information to make informed decisions.

The Sarbanes-Oxley Act focuses primarily on corporate governance and financial transparency, particularly in improving the accuracy of financial reporting but is not specifically dedicated to executive compensation disclosures. The Employment Retirement Income Security Act primarily deals with retirement and health benefits, while the Equal Employment Opportunity Act is concerned with preventing employment discrimination. These acts do not directly address the requirements for disclosing executive compensation as outlined in the Securities Exchange Act.