GE, Lilly, and SunTrust all failed new SEC rules that require companies to eliminate jargon when explaining how they pay their top executives. According to a study that SEC Chairman Christopher Cox cited in a speech last month, these companies along with 40 others didn't write annual pay reports in "plain english". The study - conducted by Clarity Communications - examined the sentence lengths and types of words used in the companies' financial statements. GE scored a 16.41 on its index, whereas Lilly received a 16.07, and SunTrust received a 17 - the highest possible score. As a basis for comparison, articles in Reader's Digest score right around an eight.

The SEC's executive pay rule overhaul that went into effect in July promised investors that companies would provide "intelligible disclosure that can be understood by a lay reader". While the SEC won't make the companies resubmit their proxy statements, Cox said they would take a tougher stance next year. The Chairman noted, "We have far to go before we can say that legalese and jargon have truly been replaced by plain English." Hopefully over time things will improve to a point where executive compensation finally becomes a transparent disclosure for all investors to review.