Bloomberg Law
May 1, 2018, 11:23 AM UTC

Newly Merged Firms Face Choice When Tallying CEO Pay Ratio

Jacob Rund

Recently merged companies reporting the difference in compensation paid to their CEOs and their median worker face a choice: Do they factor out the employees they received during those acquisitions?

Most U.S.-based corporations involved in the highest-valued acquisitions of 2017 opted to include the workers gained from these deals when developing their CEO-to-worker pay ratios, according to a Bloomberg Law analysis of last year’s top 50 deals by volume from Bloomberg Law’sDeal Analytics.

The Securities and Exchange Commission’s pay ratio rule, mandated by the 2010 Dodd-Frank Act, requires companies to report the ratio between their CEO’s pay and ...

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