SEC Staff Provides Additional Analysis Related to Proposed Pay Ratio Disclosure Rules

FOR IMMEDIATE RELEASE
2015-109

Washington D.C., June 4, 2015 — The Securities and Exchange Commission staff today made available additional analysis related to its proposed rules for pay ratio disclosure.  The analysis by the Division of Economic and Risk Analysis (DERA) considers the potential effects of excluding different percentages of employees from the pay ratio calculation. 

The analysis is posted on the SEC’s website as part of the comment file for rules proposed by the Commission in September 2013 that would require the disclosure of the median of the annual total compensation of all employees of the issuer; the annual total compensation of the chief executive officer of the issuer; and the ratio of the median of the annual total compensation of all employees of the issuer to the annual total compensation of the chief executive officer of the issuer.   

The staff believes that the analysis will be informative for evaluating the potential effects on the accuracy of the pay ratio calculation of excluding different percentages of certain categories of employees, such as employees in foreign countries, part-time, seasonal, or temporary employees as suggested by commenters.  The staff is making the analysis available for public comment.  This analysis may supplement other information considered in connection with the rules. 

Comments may be submitted to the comment file (File No. S7‑07‑13) for the proposed rules and should be received by July 6. 

Additional studies, memoranda, or other substantive items may be added by the Commission or staff to the comment file during this rulemaking.  A notification of the inclusion in the comment file of any such materials will be made available on the SEC’s website.  To ensure direct electronic receipt of such notifications, sign up through the “Stay Connected” option at http://www.sec.gov/ to receive notifications by e‑mail.