The pay ratio rule was adopted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It requires a public company to disclose the ratio of the median annual total compensation of all its employees to the annual total compensation of its chief executive officer.

Because of the unanticipated difficulties issuers have faced in implementing their compliance systems and controls, it may prove difficult for some to meet the compliance deadline. Acting Chairman Piwowar has requested public comment as issuers work with the rule and the reporting system, specifically to determine how difficult compliance is and whether or not relief is needed. These detailed comments can be submitted within the next 45 days via this link.

He also directed SEC staff to reconsider the implementation of this rule based on the comments submitted and to promptly determine if additional support or relief should be given. Because the circumstances are unique and exigent, Piwowar suggested that comments be submitted and examined quickly.

Sources:

"Reconsideration of Pay Ratio Rule Implementation", Acting Chairman Michael S. Piwowar, Feb. 6, 2017 (www.sec.gov)