Preparing Employees for CEO Pay Ratio Disclosures

Public companies in the U.S. will be required to disclose the ratio of CEO pay to median employee pay in their 2018 proxy statements—reporting on fiscal year 2017—and many are already working through the calculations involved. Prudent companies are also considering the potential impact of these disclosures on the workforce, not just shareholders. In doing so, these companies face some important decisions, both regarding the variables in the calculation itself and in how they plan to present this information.

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