Aptly titled "New challenges arise for 2020 CEO pay ratio calculations" from Willis Towers Watson identifies a number of challenges companies will likely encounter calculating their 2020 CEO/median employee pay ratios in the context of rampant COVID-19-prompted employment and pay changes including furloughs, reduced hours, layoffs, and temporary pay/benefits reductions. The timely publication encourages companies to begin considering the factors that will weigh into the calculations now with the benefit of time and the associated opportunity to develop a framework based on the disclosure rule, SEC guidance, and the company's particular facts and circumstances.
Relevant Commission and staff guidance and firm insights are provided throughout to assist companies with determining the median employee, headcounts, and compensation.
Access additional information & resources on our Pay Ratio page. This post first appeared in the weekly Society Alert!