The US government's top regulator announced the changes during testimony to the US Senate banking committee hearing.
The SEC's chairman Christopher Cox argued that information about companies should be presented in plainer English to make the information easier to use for investors.
Mr Cox pushed the use of forms of interactive data such as mutual fund prospectuses and corporate proxies, which, he says, will make it easier to compare and analyse financial data from companies.
Speaking to Associated Press, Senator Richard Shelby, chairman of the Senate banking committee, said that Mr Cox's efforts would be good news for investors.
"[The] initiatives to improve the quality and usefulness of information in corporate disclosures will benefit investors and the markets," he said.
"Efforts to enhance the transparency of executive compensation will allow shareholders to compare in a meaningful way the total pay packages awarded to corporate management."
The SEC has also pledged to be far more rigorous in its regulation of hedge funds, with closer inspection of all hedge fund advisors, who are required to register with the top regulator.