28 November 2017
For the 2018 proxy season, most public companies will be required to disclose the pay ratio between their CEO and the median compensated employee, in what is commonly known as the “CEO Pay Ratio.” Although the CEO Pay Ratio rules may be repealed or delayed in the future, they will likely remain in effect, and require disclosure, for the 2018 proxy season. Since this disclosure will be a new addition to the proxy statement, companies should consider a dry run in advance to provide adequate time to review, consider, and make any needed changes.
Latham & Watkins partners Robin Struve and Maj Vaseghi discuss recent guidance on CEO pay ratio calculations in new CEO Pay Ratio proxy disclosures that will soon be required.
In the video, the partners examine the hot-button issues and strategies companies are employing as well as the questions they are asking to help ensure they are prepared for this new disclosure requirement.