SEC Publishes Economic Analysis of Proposed Pay Ratio Rule
The SEC recently released an economic analysis of its pay ratio disclosure rule previously proposed in September 2014. The analysis by the SEC’s Division of Economic and Risk Analysis considers the impact of various methods of calculating the required disclosures, based on including or excluding certain categories of employees. The publication of this analysis suggests that the SEC is moving closer to finalizing its rule. The SEC notes that the analysis will help in evaluating the relative accuracy of the pay ratio calculation using various calculation approaches. Not surprisingly, whether non-U.S. employees are included or excluded can have a considerable impact on a company’s pay ratio calculation. Read the published report and related news coverage.