The Center On Executive Compensation filed comments with the U.S. Securities and Exchange Commission reiterating its views on the implementation of the Dodd-Frank pay for performance disclosure and responding to recent comments by the Council of Institutional Investors and the AFL-CIO
This Agenda opinion piece by Center Executive Vice President Shelly Carlin suggests the growing homogenization of pay plans has been driven to a large extent by proxy advisory firms in light of say on pay, and urges compensation committees to avoid prevalent pay practices that may not fit their companies.
The Center opposes the Dodd-Frank Pay Ratio and will continue encourage the SEC to improve the proposed rule, as well as refute arguments forwarded by proponents of the pay ratio disclosure who would seek to use pay ratio to drive their own self-serving agendas at the expense of long-term shareholder growth
During the 2013 proxy season, 466 S&P 500 companies reported say on pay results. 460 companies (98.71%) reported received majority support, averaging 91.84% support with a median of 95.49%.
According to a recent Towers Watson survey, only 1 in 10 employers believe the pay ratio will provide important information to investors.