We use cookies to collect information about how our website is used and to improve the visitor experience. You can change your browser’s cookie settings at any time. Please review our privacy policy for more information. OK
A new survey of publicly traded companies suggests many are ill-prepared for a requirement next year that they disclose the pay ratios of their CEO compared to rank-and-file employees—with a large percentage admitting their workers may be shocked to learn how large the gaps are.
According to survey results published Tuesday by the New York City-based executive compensation firm Pearl Meyer, about four in 10 companies expect to report a pay ratio of between $100 and $250 for every dollar earned by their median worker; with another two in 10 bracing for the revelation of an even higher ratio. In a separate survey last March, Pearl Meyer found that more than half of companies admit the pay ratio disclosures will have a negative impact on their workforce.
The Connecticut chapter of the National Association of Stock Plan Professionals is making the CEO pay ratio rule the subject of a Nov. 17 forum. The event is free and open to non NASPP members, with information online at www.naspp.com/connecticut. Speakers include Deb Lifshey, managing director of Pearl Meyer, and her colleague Sharon Podstupka, principal.
“Even if you don’t have all of the answers yet about who the median employee is, your (human resources) team probably has a good idea about what the ratio will look like and why,” Podstupka advised corporate clients in a September blog on the upcoming changes. “Make sure that what you say about your ratio and how you say it is immediately factored into your strategy ... This communication exercise is likely to prove just as important as the calculation itself.”