CEO compensation will continue to be a hot topic in 2017. Directors will need to ensure that public companies comply with the new CEO pay ratio disclosure rules.
These rules will require public companies report total compensation of the CEO as well as the median annual pay (including incentive pay elements) of all employees. The ratio of the non-CEO to CEO pay will give stockholders a measure of relative pay scale withing the organization.
Many have complained about the measure and it’s contribution to the compensation conversation but there is more than meets the eye here. Read more about the new pay rules here.