Sunday, October 12, 2014

Coming Soon . . . the CEO Pay Ratio

SEC Adopts Rules for Pay Ratio Disclosure


Washington D.C., Nov. 12, 2014 — The Securities and Exchange Commission today voted 3-2 to adopt a new rule that requires public companies to disclose the ratio of the compensation of its chief executive officer (CEO) to the median compensation of its employees.

The new rule, required under the Dodd-Frank Act, does not prescribe a specific methodology for companies to use in calculating a “pay ratio.”  Instead, companies have the flexibility to determine the median annual total compensation of its employees in a way that best suits its particular circumstances. . . .

That's a guess. When do you think the SEC will meet to adopt the rule?

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