The Securities and Exchange Commission is close to reviving a rule that requires companies to be transparent about how much more CEOs make than their rank-and-file, The Wall Street Journal reported on Thursday.
The SEC's move was tucked within the framework of the 2010 Dodd-Frank financial reform bill, which continues to attract controversy because of its provisions. The rule is expected to be approved by the SEC as early as September, sources tell the WSJ, but is expected to be less cumbersome than what lawmakers originally envisioned.
The regulatory body is expected to allow companies to consider a fraction of their employees when calculating median pay, the newspaper reported. Companies would have to disclose the ratio between CEO compensation and the median pay of the sampled employee group, it added.
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