SEC Adopts CEO Pay Ratio Rule

On August 5, 2015, the SEC adopted a final rule, commonly referred to as the “pay ratio rule,” requiring public companies to disclose the following items:

  • The median of the annual total compensation of all employees of a company, other than its chief executive officer (“CEO”);
  • The annual total compensation of the company’s CEO; and
  • The ratio of the annual total compensation of the company’s “median employee” to the CEO’s annual total compensation.

This new rule, which was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, is intended to assist shareholders in evaluating companies’ executive compensation practices, including when voting on “say on pay.”  The firm's full Client Alert can be found here.

Add a comment

Type the following characters: papa, six, hotel, romeo, november, romeo

* Indicates a required field.

Subscribe

Recent Posts

Contributors

Archives

Jump to Page

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.