Under Securities and Exchange Commission (SEC) rules, most U.S. public companies are required to disclose CEO pay ratios annually.
Disclosure of the CEO pay ratio is a nuanced balance of calculation, presentation and explanation. For most companies, compiling accurate payroll and benefits data presents multiple challenges. Selecting a methodology that yields an optimal disclosable ratio requires a comprehensive understanding of the rules and outside experience.
Willis Towers Watson is distinctly qualified to deliver holistic expertise to help you manage the process so your disclosure aligns with your strategic messages on CEO and worker pay.
How Willis Towers Watson can help
We bring our knowledge of executive compensation design, workforce pay structures, employee communications, statistical analyses, project management and employee market data together in a holistic offering that meets the regulatory requirements of disclosing the CEO pay ratio and anticipates its wider implications.
Our specific services can include the following:
- Application of deep technical expertise that translates the SEC requirements into practical decision points so you can more easily comply
- Strong project management skills to help you efficiently gather and manage the needed data
- Superior statistical sampling experience that can help minimize pay data gathering while maintaining the integrity and defensibility of your approach
- Ability to act as "outsourced" vendor to manage all or part of the calculation process
- Compilation of an expert report for review by legal/audit with detailed support for the approach chosen, whether it includes statistical sampling or not
- A communication strategy that anticipates the risks involved in disclosing a highly-charged ratio, including stakeholder management and risk management
- Help determining the optimal approach to ratio disclosure, both in the proxy and through other collateral venues
Why Willis Towers Watson
- We've developed a seamless, multi-disciplinary approach to tackling all aspects of the CEO pay ratio.
- Our thought leadership is widely recognized by the press, trade associations and our clients.
- Our breadth of experience in advising clients on the pay ratio exemplifies a commitment to excellence.
- We have proven experience with internal and external communication of executive and workforce pay issues.
