Here’s a resource center for HR, finance, and accounting professionals who want to get on top of Dodd-Frank CEO pay ratio disclosure rules.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires most public companies to regularly report the total annual compensation ratio of the CEO compared with the median employee, became law in 2010. Five years after that—on August 5, 2015—the SEC issued its final ruling. And so here we are.
On this page, you’ll find everything we’ve published on pay ratio. This includes tips for calculating and disclosing the pay ratio, as well as ways to overcome challenges we’ve seen our clients run into.
On September 21, 2017, the SEC released additional pay ratio guidance. The new guidance primarily reiterates and clarifies flexibility that the rule already allowed, with one substantial update. In this blog post, we go over the highlights of the interpretive guidance and updates to the Compliance and Disclosure Interpretations, and we discuss the ideas posed in the Department of Corporate Finance guidance regarding statistical sampling.
Weighing in at a whopping 294 pages, the CEO pay ratio rule is a mix of general principles and explicit guidance that leaves no shortage of questions. In this booklet, we share some of the common questions that have come up and offer insights that may prove relevant in the course of your preparation. Reserve your copy today.
Join us for a question and answer session discussing the challenges associated with the new CEO pay ratio disclosure rule.
On February 6, the SEC reopened the CEO pay ratio rule for a second comment cycle. We reviewed each comment letter and summarized the main trends here.
In this implementation-oriented guide, we break down CEO pay ratio planning and execution into 10 steps and include a quick reference checklist to help steer your efforts.
With the fate of Dodd-Frank up in the air, we take a look at the current state of the law, and analyze what could happen next.
Takis Makridis · 2/28/2017, updated on 6/13/2017
CEO pay ratio is sure to be one of the big challenges of 2017 for equity compensation professionals. In this webcast, we provide an overview of what you can do to prepare for calculating and disclosing the ratio.
Takis Makridis · 11/16/2016
In an effort to clarify aspects of its original pay ratio guidance, the SEC released additional Compliance and Disclosures Interpretations (CDI) on October 18, 2016, with 5 questions and corresponding answers. Read the CDI, as well as our perspective on it here.
You’re Missing Compensation Data for Your Pay Ratio Calculation. How Do You Find the Median Employee?
As companies prepare for the new CEO pay ratio disclosure requirement in 2017, many are running into the problem of missing employee data, especially in international jurisdictions.
Josh Schaeffer · 10/14/2016
View the slides from this presentation on pay ratio calculation methodology and contextualizing results in the proxy, delivered at the 2016 World at Work Conference in San Diego.
Nathan O’Connor · 6/17/2016
Get answers about how these updates will affect the 10-K, the proxy, the compensation committee, finance and accounting processes, and more.
Takis Makridis · 5/12/2016
In this April 2016 Workspan article, we explain why population analysis can beat sampling methods when disclosing your CEO pay ratio.
Here’s what we’ve discovered between our own research, consulting with other experts, and helping companies develop their pay ratio calculations.
Takis Makridis · 3/4/2016
Download this on-demand webinar for an overview of where things stand plus a primer on specific Dodd-Frank rules.
Nathan O’Connor · 3/4/2016
Statistical sampling makes it too easy to fall short of meeting the burden of representational faithfulness in the SEC’s guidance.
In this article, published before the SEC finalized its pay ratio disclosure rules, we argue that companies should consider the requirement an opportunity to add narrative and supplementary numerical color to their disclosures.