The Securities and Exchange Commission requires public companies to disclose the ratio of the compensation of the chief executive officer (CEO) to the median compensation of its employees in proxy statements and in annual reports requiring executive compensation disclosure.

Question

Quizplus · Accepted Answer

This statement is true. The SEC introduced a new rule in 2015 that requires public companies to disclose the ratio of CEO pay to employee pay. This information must be included in proxy statements and annual reports.

The Securities and Exchange Commission Requires Public Companies to Disclose