How to Handle “Pay Ratio”
February 26, 2021 •
Our guests – Troutman Peppers’ Dave Meyers and New Jersey Resources’ Rich Reich – discuss how to handle pay ratio, including:
- What math do you need to do to calculate a “pay ratio”?
- How do you identify your “employees”?
- How often are you required to identify the “median” employee? The possible need to redo it for this year?
- How about the use of statistical sampling to make the job easier?
- How about selecting a “consistently applied compensation measure”?
- Can you explain some of the data privacy & de minimis exemptions?
- So that’s all the math. What about the actual disclosure in the proxy? Where should that go? And how should that look?
- Do you wind up talking about the pay ratio some more in the CD&A?
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