SEC Proposes Controversial CEO-To-Worker Pay Ratio Disclosure Rule
Download PDF
- The SEC has approved a proposed rule, implementing the requirements under the Dodd-Frank Act, requiring companies to disclose the median of the annual total compensation of all employees of the company and the ratio of that median to the annual total compensation of its CEO.
- While it is easy to debate whether the benefit of such a rule to investors justifies the cost and complexity of assembling the required data, the SEC has offered registrants alternative methods of compliance that may make the process far less burdensome than could have been the case.
- Calendar year registrants will likely not need to comply with the rule until at least 2016.