To the Point - SEC finalizes ‘pay ratio’ rule

6 Aug 2015 PDF
Subject AccountingLink
Publications To the Point


As mandated by the Dodd-Frank Act, the SEC approved the final rule that requires most registrants to calculate and disclose the ratio of their principal executive officer’s total annual compensation to the total annual compensation of their median employee (the pay ratio). The rule mostly follows the SEC’s proposal from September 2013 but provides companies additional flexibility in determining the pay ratio. Registrants will be required to make pay ratio disclosures for their first fiscal year beginning on or after 1 January 2017.

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