24 Feb 2017

Report: The Pay Ratio is Coming, Let’s Make It Rational

Mercer believes that some form of CEO pay ratio disclosure is likely to become a mandatory reporting requirement within the next 12 months. Its report raises concerns in response to the government’s green paper on corporate governance reform, along with its recommendation on the best approach to take.

Mercer’s report suggests that without substantial changes, the current proposals could lead to inappropriate comparisons and other unintended consequences. It has outlined what it believes is a more effective and targeted approach to the two underlying problems – the concerns over excessively low employee pay and the perception of excessively high executive pay.