Compensation Issues

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87% of companies plan to disclose minimum required CEO pay ratio information

As companies are now required to disclose the gap between their CEO's pay and the average employee's pay, the vast majority of companies do not plan to provide much more than the required ratio, only according to a Bloomberg Law report.

The finding comes from a soon-to-be-released survey by human resources consulting firm Mercer, according to Bloomberg. The required ratio is 200 to 1 or less for the majority of the 144 companies Mercer surveyed in February.

Out of the 13 percent of companies planning to include extra information when they disclose their pay ratios, the most common detail they plan to provide is the median employee's position or location, followed by information on the company' workforce, such as the number of part-time or seasonal workers, and where these employees are located.

"[Companies] don't have as much to gain from more expansive disclosure as they do to lose if they put more into the public domain than they're comfortable sharing," Tom Langle, a specialist in executive pay and incentive plan design at Mercer, told Bloomberg.

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