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ARTICLE · 26 AUGUST 2015

SEC Approves Final Rules For Pay Ratio Disclosure

Holland & Knight
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SEC commissioners voted to approve the final "pay ratio" disclosure rules intended to help shareholders evaluate executive compensation practices.

United StatesCorporate/Commercial Law
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Shawn Turner, Partner, is based in our Denver office, Lawrie Green, Partner, is based in our Ft Lauderdale office and Christopher Cwalina, Partner is based in our Washington, D.C. office

HIGHLIGHTS:

  • SEC commissioners voted to approve the final "pay ratio" disclosure rules intended to help shareholders evaluate executive compensation practices.
  • Companies must comply with the final pay ratio rules commencing with their first fiscal year beginning on or after January 1, 2017.
  • The final rules contain specific disclosure obligations that include disclosing the median of the annual total compensation of all employees, excluding the CEO; the annual total compensation of the CEO; and the ratio of the median to the annual total compensation of the CEO.

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