SEC proposes new rule on CEO pay disclosure

Companies may have to disclose the difference in CEO compensation and other employees

A new proposed rule may have companies pulling out their calculators and crunching some numbers.

On Wednesday, regulators proposed the rule that will require public companies to make CEO compensation more transparent—and it’s drawing some controversy. The proposed rule was originally proposed in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and it mandates that public companies to report the wage gap between their CEOs and rank-and-file employees.


Cathleen Flahardy

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