Findings from CEO pay rate disclosures

Posted by Michael Kesner, Edward Sim, and Abby Dunleavy on July 25, 2018.

The pay ratio disclosure requirement called for in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act1 took effect for fiscal years beginning on or after January 1, 2017. Public companies are required to disclose the ratio of the compensation of their chief executive officer (CEO) to their median employee. Deloitte Consulting LLP analyzed pay ratio disclosures of 294 S&P 500 companies from DEF 14A filings as of April 10, 2018. Here’s a summary of what we found.

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Finding the Silver Lining in the New CEO Pay-Ratio Disclosure Rules

Silver Lining

Posted by Michael Kesner on October 23, 2013

Tucked inside 2010’s Dodd-Frank legislation is the requirement for the SEC to implement rules requiring public companies to disclose the ratio of their median employee’s compensation to the CEO’s compensation. The SEC proposed the new rules on September 18, 2013, subject to a 60-day public comment period after the rule is published in the Federal Register. Once finalized, the rules will take effect the following compensation year. So, depending on the effective date, companies will have to start reporting the ratio in 2015 or 2016. (Also depending on the effective date, companies following a fiscal year calendar may be subject to reporting before their calendar year counterparts.) While this may sound too far away to worry about today, calculating the ratios will be no small feat — and will likely come with a substantial “headache factor.” Companies would be wise to prepare sooner rather than later.

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Building the Next Gen in Financial Services

Building the Next Gen in Financial Services Posted by Rob Dicks and Linda Quaranto on June 1, 2012

Many financial institutions are in the midst of an all-out effort to redeem, refocus, reposition and generally remake themselves in the wake of the financial crisis and ensuing Dodd-Frank regulations (among others). While the topic of executive compensation has received much attention, the talent implications of industry reform reach far beyond the C-suite and far beyond compensation alone, rippling throughout the ranks of both front-office and back-office personnel.

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