Pay Ratio Disclosure: A Checklist of Key Considerations
After finishing the pay ratio analysis, it’s time to draft the disclosure for the proxy.
A pay ratio proxy disclosure must summarize the analysis in line with the rule’s disclosure requirements. It also needs to provide enough information to satisfy investors and other readers of the proxy. And, of course, it has to do all this in an accurate and concise way.
While the disclosure will need legal review for content, accuracy, and completeness, it helps to first check the disclosure against the pay ratio rule’s mandatory requirements. Here they are—along with some options for putting your company’s pay ratio in context.