In reaction to public outrage over high executive pay and bonuses at publicly traded companies, the Israel Securities Authority, this week passed stricter reporting rules that compel businesses to disclose more details of the approval process for remuneration packages granted to their executives. The ISA approved the changes following recent discussion over pay packages approved by Bank Hapoalim and Israel Discount Bank. "The latter raised a number of questions over the company's method of approval, as well as, over the transparency of the approval processes, the impact on the business situation and management of the company and questions over the considerations made regarding effectiveness and fairness of the remuneration packages," the ISA said. The approved reporting guidance is not a new reporting requirement but rather determines the presentation method of the details of reporting executive pay. Companies will be obliged to disclose details and reasoning over how those responsible for approving remuneration packages determined the compensation and its components so that they can explain the basis of their decision, assuming that it was rational and not arbitrary. As this information is crucial to the investment community, the ISA requires companies to make it available to the public. Furthermore, companies will need to disclose whether at the time of the remuneration approval, all parties involved received full information over the details of the package they sanctioned. More detailed disclosure over the decision-making process regarding compensation packages, will force companies explain the correlation between the granting system and the contributions the manager made to the company and how and to what extent he implemented the company's targets, the ISA said.