The U.S. Securities and Exchange Commission is enhancing disclosure requirements for issuers of stock options.

Under amendments to its rules, the SEC proposes to enhance company disclosure of employee stock option plans and other equity compensation arrangements.

Starting in the second half of 2002, companies will have to provide detailed information about their equity compensation plans in a new table in their annual reports filed with the SEC.

This information will also have to be included in a company’s proxy or information statement in years in which the company is submitting a compensation plan for security holder approval.

The table will include the number and weighted-average exercise price of outstanding options, warrants and rights, and the number of securities available for future issuance under a company’s existing equity compensation plans.

The new disclosure will be given separately for plans that have been approved by security holders and plans that have not been approved by security holders.