How to Handle “Pay Ratio”

Our guests – Troutman Peppers’ Dave Meyers and New Jersey Resources’ Rich Reich – discuss how to handle pay ratio, including:

1. What math do you need to do to calculate a “pay ratio”?
2. How do you identify your “employees”?
3. How often are you required to identify the “median” employee? The possible need to redo it for this year?
4. How about the use of statistical sampling to make the job easier?
5. How about selecting a “consistently applied compensation measure”?
6. Can you explain some of the data privacy & de minimis exemptions?
7. So that’s all the math. What about the actual disclosure in the proxy? Where should that go? And how should that look?
8. Do you wind up talking about the pay ratio some more in the CD&A?

For many more Vid-Guides dealing with corporate & securities law, corporate governance, E&S issues and more – particularly if you want to review any Vid-Guides referred to during this Vid-Guide – see the list of Vid-Guides spread throughout these categories:

• Corporate Governance
• Proxy Season
• Executive Pay
• ’34 Act/Other
• ’33 Act/Deals
• Sustainability/E&S
• Career Advice
• Fun Party

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