Analysis

3 Things To Know About The Coming CEO Pay-Ratio Mandate

Law360, New York (October 30, 2017, 9:10 PM EDT) -- With 2018 rapidly approaching, experts say public companies should be preparing to comply with long-deferred Dodd-Frank pay-ratio disclosure requirements set to take effect next year to avoid falling behind the eight ball next proxy season.

The disclosure, mandated by the landmark Dodd-Frank Act of 2010, is intended to shine a light on corporate compensation practices. Bound to be scrutinized by shareholders and employees, the rule requires that each public company disclose the compensation of its chief executive and its median employee, and the ratio between the two.

The hotly debated policy will soon become reality, more than two years after a...

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