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2018 CEO pay ratio disclosure

Starting this year, public companies are required for the first time to disclose new details on compensation in their annual proxy filings.

In particular, they are required to report CEO compensation, media compensation of their employees, and - most significantly - the ratio between the two numbers.

The disclosure of this data, mandated by the 2010 Dodd-Frank Act, creates potential communications challenges:

  • To state the obvious, half of every company's workforce will now be aware that they earn less than most of their fellow employees.
  • Employees will be able to compare median salaries to other companies in the same industry.

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