"CEO Pay-Ratio Math Gets Messy in 2020" from Intelligize explains in a nutshell why determining the CEO pay ratio and preparing the associated disclosure are likely to be more challenging this year due to the potential impacts of COVID-19 on companies' headcount, employee status, and workforce compensation adjustments. The post includes an example from a recent proxy statement of a disclosure from a restaurant chain that reduced its headcount by 25% from 2019, but concluded that the changes did not warrant a change in its pay ratio disclosure.
See our prior reports: "CEO Pay Ratio: Consider Changed Circumstances" and "CEO Pay Ratio: COVID-19 Style" and additional information and resources on our Pay Ratio page. This post first appeared in the weekly Society Alert!