Date
28 May 2017
How many times the pay of the median Apple employee does chief executive Tim Cook (center, in black) earn? Investors will have to be told. Photo: Bloomberg
How many times the pay of the median Apple employee does chief executive Tim Cook (center, in black) earn? Investors will have to be told. Photo: Bloomberg

New US rules require firms to disclose CEO-worker pay ratios

US firms will have to tell investors how many times more the chief executive officer earns than the median employee, under new rules adopted by US securities regulators, Reuters reported.

The Securities and Exchange Commission’s final rules give companies some flexibility in calculating the median pay.

For instance, they can exclude 5 percent of their overseas workers when arriving at the number and can use statistical sampling.

Only large and mid-sized firms will need to comply with the disclosure rule.

Corporate trade groups are widely expected to file a legal challenge.

Companies will have to start reporting the new pay ratios in the first fiscal year beginning on or after Jan. 1, 2017.

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