The Securities and Exchange Commission has unveiled guidelines for a pay ratio disclosure rule under the Dodd-Frank Act, which requires publicly traded companies to calculate pay ratios that compare executive compensation to the median compensation of all other employees, according to the Wall Street Journal.
The rule, which was adopted in August 2015, requires companies to disclose the pay ratio in registration, proxy and information statements as well as in annual reports in their first fiscal year beginning on or after Jan. 1, 2017.
In an update issued Oct. 18, the SEC clarified part of the rule. The commission said a company's worker count should be done within the last three months of its fiscal year, and the count should only include employees whose compensation is determined by the company or its subsidiaries, according to WSJ.
More articles on compensation:
Study measures patients' perceptions on orthopedic surgeons' pay
Aon Hewitt: Salary, bonus growth to remain flat in 2017
RN average hourly wage & salary for all 50 states — Calif. tops the list at $101k