28 Aug 2017

SEC's CEO pay ratio rule to probably fade

Guadagneranno felici e contenti - L'Economia, Italy

The transparency requirement dictated by the "CEO pay ratio rule" will probably fade before being applied. The SEC rule - which requires companies to report in the balance sheet the ratio between the company chief 's remuneration and the average employee's one - has been seen by Trump administration in the spirit of a more general and more pronounced deregulation.

Together with the workers' associations, a consistent part of global asset managers is backing the SEC rule.

"It is highly possible that these investors will push for this parameter to be kept and applied," commented Fabio Bianconi, Director at Morrow Sodali, who continued "In considering it a strong reputational factor, many of them are creating an internal rule that will make the ceo pay ratio a stable ingredient for investment policies and well-proportioned to achieved results."

Topics

Governance Remuneration USA