Reprinted with permission from The Legal Intelligencer, November 6, 2017.

Pay ratio is still here. If you thought pay ratio was out the door when the new presidential administration came through in January of this year, you are not alone. However, the pay ratio rule has not been repealed by Congress. Instead, the Securities and Exchange Commission (SEC) has provided some new guidance that may provide relief for companies that have been preparing for the pay ratio disclosures for more than a year now.

Under Item 402(u) of Regulation S-K, the pay ratio rule, beginning early 2018, public companies must disclose the median of the annual total compensation of all employees (other than the CEO), the CEO’s annual total compensation, and the ratio between the two, referred to in this article as the pay ratio. Read More.


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