Pay Ratio Consulting
Take the Hassle Out of SEC Requirements
- Remove the burden (headache) of extensive data analysis
- Efficiently complete the Pay Ratio determination required by Dodd-Frank
- Ensure successful management of any adverse messages delivered by a too large pay ratio
Beginning with the 2018 proxy season, companies that issue proxies to shareholders will be required to disclose the “pay ratio” — i.e., the ratio of CEO pay to the pay of the median-paid employee in the company worldwide. It sounds pretty basic when you first hear it, but consider these complications:
Pay is defined as “annual total compensation,” meaning that it includes the increase in actuarial liability of any pensions as well as the value of any new equity grants or awards
- In order to determine who the median-paid employee is, you need to know the pay of all employees — including part-time and seasonal employees worldwide
- All earning need to be converted to US dollars
For companies with a large employee population or with employees in more than one country, this requirement presents a challenging and time-consuming process.
We Understand the Data
At October Three, we truly understand the data and are experts at calculating the many elements that go into the compensation of each employee such as differing pension benefits and stock options.
Efficient Calculation, Done Right
We understand you’re not in the business of data management so why not let us take this burden off your shoulders? Our data analysts and consultants are highly trained in performing these types of calculations and will quickly and efficiently get these tasks done for you, allowing you to focus your energy on what’s important — your core business!
Helping You Manage an Unpleasant Message
For most companies, their pay ratio will appear very high to some stakeholders. Because we understand the process that goes into determining pay ratios, we can help you manage that message and craft the right narrative for stakeholders.