On August 5, 2015, the Securities and Exchange Commission (SEC) adopted a final rule that requires a public company to disclose the ratio of the compensation of its CEO to the median compensation of its employees.  Companies will be required to provide disclosure of their pay ratios for their first fiscal year beginning on or after Jan. 1, 2017.  The rule does not apply to smaller reporting companies, emerging growth companies, foreign private issuers, MJDS filers, or registered investment companies.  The rule does provide transition periods for new companies, companies engaging in business combinations or acquisitions, and companies that cease to be smaller reporting companies or emerging growth companies.

The Pay Ratio Disclosure Rule Fact Sheet can be found here:  http://www.sec.gov/news/pressrelease/2015-160.html and the long-form rule release can be found here:  http://www.sec.gov/rules/final/2015/33-9877.pdf.

For a Reuters article by Sara Lynch on the new Rule, please see the following link:  http://www.reuters.com/article/2015/08/05/cbusiness-us-sec-rule-ceopay-idCAKCN0QA1Q920150805