SEC Adopts Final Pay Ratio Disclosure Rules

    View Authors August 2015

    In a 3-2 vote on August 5, 2015, the Securities and Exchange Commission (SEC) adopted final rules to implement the pay ratio disclosure requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Companies will be required to provide their pay ratio disclosures for their first fiscal year beginning on or after January 1, 2017.  The subject of much controversy and debate, the rules generated more than 287,400 comment letters, including more than 1,540 individual letters. The final rules retain the flexibility contemplated by the 2013 proposal and include a number of additions and modifications. This publication provides a summary of certain aspects of the new rules.