In an op-ed this week in the Board publication Agenda, Center On Executive Compensation CEO Charlie Tharp exposes the flawed logic of using the pay ratio as a measure of fairness.
White indicated she has directed the SEC staff to begin a review of the Commission’s disclosure rules, including executive compensation disclosures, in an effort aimed at "rethink[ing] not only the type of information we ask companies to disclose..."
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.
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.
Only seven S&P 500 companies failed to receive majority support for their say on pay proposals in 2013. This number exceeds 2011 totals by one, but represents nearly a 50% drop when compared to 2012.