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ARTICLE · 23 SEPTEMBER 2013

SEC Proposes Rules on CEO Pay Ratio Disclosure

On September 18, 2013, the Securities and Exchange Commission proposed rules requiring publicly-traded companies to disclose the ratio of median compensation of all employees to the compensation of the principal executive officer.

United StatesCorporate/Commercial Law

On September 18, 2013, the Securities and Exchange Commission (SEC) proposed rules requiring publicly-traded companies to disclose the ratio of median compensation of all employees to the compensation of the principal executive officer. The SEC proposed these rules in response to the mandate of Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Highlights of the Proposed Rules

  • The median employee for purposes of the ratio would be identified from all employees of the registrant and its subsidiaries on the last day of the most recently completed fiscal year, including all domestic and foreign full-time, part-time, seasonal or temporary workers employed on that day.

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