US public companies should be preparing now to disclose their CEO pay ratios in 2018.

For the 2018 proxy season, most public companies will be required to disclose the pay ratio between their CEO and the median compensated employee, in what is commonly known as the “CEO Pay Ratio.” Although the CEO Pay Ratio rules may be repealed or delayed in the future, they will likely remain in effect, and require disclosure, for the 2018 proxy season. Companies should be preparing this summer and fall in order to be ready. Since this disclosure will be a new addition to the proxy statement, companies should consider a dry run in advance to provide adequate time to review, consider, and make any needed changes.

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