Client Alert: SEC Issues Additional Guidance on CEO Pay Ratio Rules
The SEC recently released additional guidance to companies related to the CEO pay ratio requirements in Item 402(u) of Regulation S-K and the relevant methodologies required for its calculation. This new guidance offers insight on method of calculation, furloughed employees and contracted employees.
Companies will be required to disclose the pay ratio starting in their 2018 proxy statements. For further information on CEO pay ratio disclosure, please see our analysis of the final rules here.
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