The pay ratio rule, which was adopted on August 5, 2015, closely tracks the initial 2013 rule proposal, subject to limited exceptions. The rule, which is discussed in further detail in this White Paper, is the culmination of a somewhat contentious rulemaking process.
Numerous publications have reported the dramatic growth of chief executive officer (CEO) pay over the past several decades, highlighting studies that show an increasing range in CEO-to-worker pay, with some studies and reports asserting that CEOs are paid 300, 500, or even 1,000 times more than average worker pay. There have been ongoing debates about the meaning and significance of CEO-to-worker pay ratio information.
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