August 9, 2017
Pay Ratio: Early Trends
– Broc Romanek
As Liz blogged recently, our own survey on pay ratio readiness shows that many companies seem to have been banking on a repeal of the rule. This short memo by Longnecker & Associates includes these stats:
In reviewing a number of early adopters of disclosures, we noted some trends in both the ratios and how they are disclosed:
– Ratios disclosed range from 6:1 to almost 80:1, initially indicating ratios much lower than some talking heads predicted early on.
– Ratios are being disclosed both within and outside of the CD&A. Some companies are including the
disclosure in the narrative to the Summary Compensation Table, while a minority of companies summarized
the ratio in the proxy summary.– While supplemental disclosures are permitted, few early adopters have taken such steps. This trend may
shift as more companies disclose and market benchmarks potentially develop.
For those registered for the upcoming “Pay Ratio & Proxy Disclosure Conference,” tune in next Tuesday, August 15th for the second in a series of three monthly webcasts that serve as a pre-conference: “Pay Ratio Workshop: What You (Really) Need to Do Now.” The first webcast was on July 20th (transcript & audio archive available); the third webcast is September 27th.
The speakers for next Tuesday’s webcast are:
– Mark Borges, Principal, Compensia
– Keith Higgins, Partner, Ropes & Gray LLP
– Scott Spector, Partner, Fenwick & West LLP
Register Now: This is the only comprehensive conference devoted to pay ratio. Here’s the registration information for the “Pay Ratio & Proxy Disclosure Conference” to be held October 17-18th in Washington DC and via Live Nationwide Video Webcast. Here are the agendas – 20 panels over two days. Register today.