CEO Pay Ratio: 40 Frequently Asked Questions and Answers

The fast-approaching 2018 proxy season marks the debut of the new CEO pay ratio disclosure rule.

Weighing in at a whopping 294 pages, the rule is a mix of general principles and explicit guidance that leaves no shortage of questions. Challenges range from gathering voluminous HR data to performing the calculation itself. The specific implementation hurdles vary from company to company.

As consultants who handle both the strategy and end-to-end computational aspects of the rule, we have a unique view into the practical realities of its implementation. In our conversations with hundreds of companies preparing for the rule’s inception, many of the same questions have come up over and over—questions about the rule’s survival and timeline, what the rule includes, the analysis process, and the proxy disclosure.

We spent the summer months preparing a detailed booklet capturing these common questions and our perspectives. If you’d like to request access to a digital copy of the booklet, please request it here.