Regulatory Alerts2013-10-01 | 2013-23073Added
SEC Proposed Rule on Pay Ratio Disclosure
The Securities and Exchange Commission proposes amendments to Regulation S-K to implement Section 953(b) of the Dodd-Frank Act, requiring issuers to disclose the ratio of the median annual total compensation of all employees to the chief executive officer's compensation. This mandate applies to annual reports, proxy statements, and registration statements containing executive compensation disclosures, while explicitly exempting emerging growth companies, smaller reporting companies, and foreign private issuers. The proposed rule aims to balance investor transparency regarding pay equity with concerns from industry stakeholders about the significant compliance costs and data collection burdens associated with calculating median employee compensation.