Chairman Clayton Discusses SEC’s Future Agenda
The Securities and Exchange Commission (“SEC”) expects to publish its near-term agenda in the coming months, but Chairman Jay Clayton recently gave a preview of what the agency’s agenda will include. In a November 8 speech at the PLI 49th Annual Institute on Securities Regulation in New York City, Clayton said that the SEC’s next near-term agenda would be shorter than previous ones due to limited resources and the time and resource pressures of rulemaking. Despite the SEC’s shorter near-term agenda, Clayton noted that the agency is still making progress on several projects. He referenced the SEC finishing two of. Read More.
SEC to Offer Interpretive Guidance on Pay Ratio Disclosures
To prepare companies for complying with the pay ratio disclosure requirements early next year, the Securities and Exchange Commission (“SEC”) recently approved new interpretive guidance. The interpretive guidance outlines the market regulator’s views regarding the use of reasonable estimates, assumptions and methodologies, and statistical sampling as allowed by the pay ratio rule. In addition, the guidance clarifies that companies can use applicable existing internal records (e.g., tax or payroll records) when determining whether to include non-U.S. employees and identifying the median employee. It also offers guidance concerning when a company can use widely recognized tests in determining whether its workers. Read More.
New C&DIs Address Pay Ratio Disclosure Rule
Clarifying guidance for pay ratio disclosures, the Securities and Exchange Commission’s Division of Corporate Finance has updated its Compliance and Disclosure Interpretations (“C&DI”): Regulation S-K. The new C&DIs address Release No. 33-9877, Pay Ratio Disclosure, which calls for public companies to disclose the ratio comparing the chief executive officer’s salary with the median pay of a company’s employees. Questions answered in the C&DIs concern the calculation of the median employee compensation, as well as how companies should handle furloughed employees and independent contractors. Public companies will be required to comply with the new pay ratio disclosure requirements in 2018. More. Read More.