The Center urged the SEC to consider the proposed rule's "deleterious effects" on efficiency, competition and capital formation and make considerable changes to minimize the significant compliance burdens imposed on companies given that the pay ratio disclosure will be useless and potentially misleading to investors.
The Center On Executive Compensation will partner with Equilar, the leader in executive compensation benchmarking and governance research to encourage the adoption of more standardized Realizable and Realized Pay methodologies.
The December 5th Roundtable will be the first official action taken by the Commission since issuing the June 2010 concept release on the U.S proxy voting system.
Since 2010 there have been only 14 pay ratio related shareholder proposals. These proposals have averaged over 93% shareholder opposition with no single proposal receiving over 10% support.
According to a recent Towers Watson survey, only 1 in 10 employers believe the pay ratio will provide important information to investors.