March 6, 2017
More on “Pay Ratio: Efforts at the State & City Level”
– Broc Romanek
As a follow-up to this recent blog by Choate’s Art Meyers, here’s the intro from this article:
The proliferation of state pay ratio proposals continued this week as legislators in the deep blue states of Massachusetts and Illinois introduced new pay ratio measures, with Massachusetts becoming the first state to eschew use of the SEC’s pay ratio calculation in favor of a pay ratio which focuses on comparing a company’s highest paid employee to median U.S. employee pay. The addition of the Illinois and Massachusetts legislation brings the number of states which have introduced or passed pay ratio legislation to five, not including the cities of San Francisco and Portland, Oregon. Interestingly, the two new pay ratio legislative efforts do not follow the templates used previously, which primarily imposed surtax penalties on companies based on the pay ratio:
See this Choate memo about the Massachusetts legislation…