On September 18, 2013, the SEC issued proposed regulations under the 2010 Dodd-Frank Act requiring public companies to disclose median annual compensation of all employees and the ratio of that median to the total annual compensation of the CEO. Companies would be required to comply with the new regulations in the first fiscal year beginning on or after the effective date of the final rules. Thus, if the final regulations are adopted in 2014, the proposed compliance timeline would require companies to disclose the pay ratio in their proxy statements for their 2016 shareholder meetings, based on 2015 compensation. The proposed regulations include alternative methods for calculating employees' annual compensation and determining the median. After identifying the median employee's annual compensation, companies would be required to recalculate that employee's annual compensation according to proxy statement pay calculation rules. The proposed regulations require that the CEO's total annual compensation also be calculated according to proxy statement calculation rules. The disclosure is then required to be presented as a ratio of total annual compensation of all employees as a multiple of CEO pay. For example, if the median employee's annual compensation is $50,000 and the CEO's total annual compensation is $1 million, the ratio would be disclosed as "1 to 20," or as a narrative, such as "the CEO's total annual compensation is 20 times that of the total median annual compensation of all employees."