Corporations are not really doing that well when it comes to explaining to investors how executives are compensated and what exactly they have to do to earn their bucks, says the Securities and Exchange Commission.

In its first review of corporate filings since new pay disclosure rules were put in place, the SEC said companies needed to explain how and why they arrived at their decisions. Secondly, they needed to do it in a clearer way using plain English, graphics and tables.

The report doesn't actually bag any companies but John White, the SEC's top official in charge of the new rules has made it quite clear they are not up to scratch. In his speech, reported in the New York Times, he said: "We found ourselves asking this question over and over and over again: Where's the analysis?''

"We saw a great deal of detail this year, but what was missing was a discussion of how and why those philosophies and processes resulted in the numbers.''

No company has been penalized for failing to comply with the new rules but in an interview, White has put them on notice for next year. "We will be looking for companies to reflect on the things that were in the report and the need for analysis, clarity and presentation," he said. "When we are reviewing next year, people will be on notice of the shortcomings this year.''

Watch this space.