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  • CEO Pay Ratio Disclosures Have Begun, Putting Morale at Risk

SHRM.com

CEO Pay Ratio Disclosures Have Begun, Putting Morale at Risk

Mar 20, 2018

Publicly traded U.S. companies have started to disclose how the pay of their CEOs compares to the compensation of their median employees (the so-called "pay ratio"). The disclosure is required, beginning this year, by the Dodd-Frank financial reform act.

"We are now in the throes of the first proxy season in which U.S. public companies are required to disclose their CEO-to-median-employee pay ratios," and a significant number of proxy statements with the new disclosure are now publicly available, said Deb Lifshey, a managing director of Pearl Meyer, a pay consultancy based in New York City.

Pearl Meyer's CEO Pay Ratio Watch webpage is tracking and reporting pay-ratio data from employer proxy statements by industry and size, and Lifshey commented on the findings as of mid-March.

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