The AFL-CIO's 2015 rendition of its annual Executive PayWatch website provides a tailor-made example of how the pay ratio will be used if and when it is finalized.
Although a positive first, the proposed implementation of the Dodd-Frank pay for performance disclosure is highly problematic by requiring the comparison of equity vesting over multiple years to one year total shareholder return.
According to Center data, nearly one in five S&P 500 companies included either a realized pay or realizable pay disclosure as a supplement to the summary compensation table.
In 2012, 130 S&P 500 companies received a year-over-year change in SOP support of over 10 percentage points. In 2013, there were 107 companies. In 2014, there were 90.