The CEO Pay Ratio Disclosure Rule: Early Takeaways from Year 1
Amidst several speculations and controversies, the CEO pay ratio disclosure rule has officially taken effect, and is now requiring compliance from most companies starting with their 2018 proxy statement. The rule requires disclosure of the employees’ median annual total compensation (excluding the CEO), the CEO’s annual total compensation, and the ratio of these amounts.
Our panel of key thought leaders and practitioners will discuss the key takeaways from the initial batch of pay ratios disclosed in SEC filings. They will offer a discussion of the fundamentals as well as updates regarding businesses’ compliance with the CEO Pay Ratio Disclosure Rule. This LIVE Webcast aims to help you better understand information on the ratios disclosed and lessons learned from the first year of disclosure.
Key topics include:
- Key Takeaways from the Initial Disclosures
- Common Challenges
- Lessons Learned
- Reactions from Different Constituencies
- What to Expect Going Forward
Shaun Bisman, Principal
Compensation Advisory Partners
Stephen Charlebois, Principal
Semler Brossy Consulting Group
- Internal Communication
- To whom, how, and when companies are communicating ratios internally, as well as any advice on internal communication going forward
- Details on supplemental ratio preparation (if any)
- Board’s reaction to the CEO pay ratios
- External Reactions & Implications
- External reactions from investors and shareholders and expectations going forward, including any potential impacts on Say on Pay
- Highlighted focus on pay ratios that are getting additional scrutiny and the root causes/sources of scrutiny
- Peer Comparisons
- Use of peer CEO pay ratios and any considerations related to using/analyzing this data going forward
- Typical mix of pay vehicles used in determining median compensation
- General prevalence of companies using certain methodologies to determine the median employee or applying certain exclusions, as well as reasoning behind certain methodology choices. Will touch on 1) statistical sampling/CACM/COLA, 2) international labor, 3) companies fully utilizing the 5% exclusion threshold, 4) data privacy exemption, 5) companies using a different total compensation number from the Summary Compensation Table for the CEO to calculate the pay ratio, 4) companies annualize employees or CEO compensation, etc.
- Effects of benefits included in the median pay
- Details on the depth, location, and elements of disclosures, as well as advice going forward (including peer ratios, multiple ratios, most effective disclosures, etc.)
- Learnings so Far/Implications
- Learnings so far from companies/industries with the highest and lowest CEO pay ratios and those that are getting more scrutiny
- Common challenges faced so far
- Interesting/unexpected trends
- Long-term implications and potential regulations that may stem from the CEO pay ratio
- Predictions on methodology and investor reactions
Who Should Attend:
- Compensation and Payroll Professionals
- Executive Compensation Practicing Lawyers
- C-Level Executives
- Compensation Committee Members
- Regulatory and Policy Managers
- Business Lawyers
Shaun Bisman is Principal at Compensation Advisory Partners in New York. He has over ten years of experience consulting to management and compensation committees. He provides compensation consulting services to both public and privately-held companies, assisting with incentive plan design, peer group development, performance measurement, pay-for-performance validation and director compensation. He has significant experience in the insurance, financial services and consumer products industries. Shaun authors CAP Thinking articles (CAPintel) and oversees CAP’s Dodd-Frank/Say on Pay research.
Shaun Bisman is Principal at Compensation Advisory Partners in New York. He has over ten years of experience consulting to …
Stephen Charlebois has over 10 years of executive and international compensation consulting experience which was gained through a combination of external consulting and in-house roles. He has extensive experience working across a broad spectrum of international executive and management pay issues typically facing global multi-national organizations. Working and living in both Europe and North America helped develop Stephen’s unique perspective on international compensation issues.
His current client base is representative of his background and experience and is focused on companies in the Technology, Energy, Chemicals, and Aerospace and Defense industries.
Before joining the firm in 2013, he most recently worked for a global multinational organization and a Private Bank/Asset Manager headquartered in Switzerland. Prior to that, he worked with Mercer Consulting’s human capital practice in both Calgary, Canada and Geneva, Switzerland.
Stephen Charlebois has over 10 years of executive and international compensation consulting experience which was gained through a combination of …
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Method of Presentation:
Experience in executive compensation/securities laws
NY Category of CLE Credit:
Areas of Professional Practice
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About Compensation Advisory Partners
CAP is a leading independent consulting firm specializing in executive and director compensation and related corporate governance matters. Our consultants have served as independent adviser to Boards and senior management at many leading companies in the areas of compensation strategy, program design and in promoting sound corporate governance principles.
About Semler Brossy Consulting Group
Semler Brossy is an established, independent executive compensation consulting firm founded in 2001. Over the years, our clients have trusted us with their toughest business issues, helping them work through changes in strategic direction, turnaround situations, CEO succession, transactions such as mergers, acquisitions and IPOs, and conflicts between management and the Board. We have built and maintained longstanding corporate and board consulting relationships because we always view issues from a multi-faceted business perspective.