The CEO Pay Ratio is a wage ratio. Pursuant to Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies are required to disclose (1) the median total annual compensation of all employees other than the CEO and (2) the ratio of the CEO's annual total compensation to that of the median employee, (3) the wage ratio of the CEO to the median employee.[1]
The proxy season 2018 was the first year that CEO Pay Ratio data was publicly available.[2]
UK pay ratios
In the UK, all quoted public companies with over 250 UK employees provide pay ratios between their highest earner and pay at the 25th, 50th and 75th percentile of their workforce (UK only). This measure was brought in by the Conservative government with the aim of providing greater transparency on pay. The High Pay Centre publishes a regular analysis of the ratios.
See also
Notes
References
- ↑ "H.R.4173 - Dodd-Frank Wall Street Reform and Consumer Protection Act". Congress.gov. Archived from the original on April 28, 2019. Retrieved 28 April 2019.
- ↑ Lifshey, Deb (2018-10-14). "The CEO Pay Ratio: Data and Perspectives from the 2018 Proxy Season". The Harvard Law School Forum on Corporate Governance. Retrieved 2021-01-12.
External links
- The “Pay Ratio Provision” in the Dodd-Frank Act: Legislation to Repeal It in the 113th Congress. Congressional Research Service.
- High Pay Centre provides regular analysis of UK pay ratios.
- All analysis of CEO pay ratios are available from the abrdn Financial Fairness Trust.
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