The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

December 17, 2018

Pay Ratio: Letter from Investor Group to Fortune 500

Broc Romanek

Here’s news from this ‘Willis Towers Watson’ blog:

Companies preparing for Year 2 CEO pay ratio disclosures now have more questions to consider. Recently, Fortune 500 company compensation committees began receiving a letter from a group of 48 institutional investors requesting them to disclose more information on workforce compensation practices.

The letter posits that since “disclosure of the median employee’s pay provides a reference point for understanding the company’s workforce,” companies should move “to help investors put this pay information into the context of your company’s overall approach to human capital management” with more expansive disclosure.