Wednesday, August 5, 2015

CEO Pay Ratio Rule: Stunning New Regulation from Securities and Exchange Commission


Quoting from the main federal agency that regulates publically traded corporations and their shareholders: “Today, the Commission takes another step to fulfill its Congressional mandate to provide better disclosure for investors regarding executive compensation at public companies.  As required by Section 953(b) of the Dodd-Frank Act,[1] today’s rules would require a public company to disclose the ratio of the total compensation of its chief executive officer (“CEO”) to the median total compensation received by the rest of its employees.[2]  The hope, quite simply, is that this information will better equip shareholders to promote accountability for the executive compensation practices of the companies that they own.”  See here: http://www.sec.gov/news/statement/statement-on-open-meeting-on-pay-ratio-aguilar.html .

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