This paper examines the overt non-compliance with a regulation mandating detailed compensation disclosure in Brazil. A preliminary court injunction was used by a substantial number of firms to omit the most sensitive part of the compensation information and the main argument was that such disclosure posed a security threat to managers and directors.However, our empirical analysis suggests that the decision to avoid full compliance with the disclosure regulation is more plausibly motivated by agency conflicts. Specifically, we find that non-complying companies tend to have lower corporate governance quality and higher ownership concentration. They also tend to be larger and less profitable. Finally, state and foreign entity owned companies are significantly less likely to rank among non-compliers.Our event study shows that price revisions around the day when this decision became public were significantly worse for firms that are perceived as having higher governance quality, suggesting that these firms negatively surprised their outside shareholders by failing to comply with a regulation aligned with good corporate governance practices.