Management frequently objects to disclosing additional information on the grounds that it is proprietary. Consider the recent FASB proposals on expanding disclosures on

(a) executive stock compensation and

(b) business segment performance. Many corporate managers expressed strong opposition to both proposals. What are the potential proprietary costs from expanded disclosures in each of these areas? If you conclude that proprietary costs are relatively low for either, what alternative explanations do you have for management’s opposition?

AppendixLO1