What is Pay Ratio Disclosure?
Pay Ratio Disclosure is a rule adopted by the Securities and Exchange Commission (SEC) that requires a public company to disclose the chief executive officer’s compensation in comparison to the median pay of its employees. This rule helps companies keep flexibility in calculating this pay ratio and is used as a tool to inform shareholders when voting on “Say on Pay”. As of 2017, companies are required to provide Pay Ratio Disclosure information through their registration statements, proxy and information statement, and annual report that calls for executive compensation information. It is required that these companies provide disclosure of their pay ratio information for their first fiscal year. For support and additional information, explore our Annual Meeting and Proxy Solutions.