Mayer Brown's "Market Trends 2019/20: Pay Ratio Disclosures" provides helpful examples of recent (2020) pay ratio disclosures that illustrate these various scenarios:
- Reuse of the median employee
- Substitution of the median employee
- Comparison with prior year pay ratio disclosure
- Use of supplemental ratios to reduce the pay ratio
- Explanations for an unusually high ratio
- Supplemental disclosures about the median employee and employee population
- Reliance on exemptions for excluding non-U.S. employees
For those Society in-house members interested in joining a pay ratio disclosure working group, specifically prompted by potential COVID-19 impacts on their company's employee population or employee/executive compensation arrangements that may require consideration of a new median employee, please email Randi Morrison at rmorrison@societycorpgov.org.
See our recent report: "CEO Pay Ratio: COVID Challenges" and additional resources on our Pay Ratio page. This post first appeared in the weekly Society Alert!