With growing concerns about the pay of corporate CEO’s in Australia, including government taking aim at CEO’s seen to be highly paid, corporates need to take note of global developments on the issue. The US’s Dodd-Frank Act, which was a response to the global financial crisis, requires public companies to disclose the ratio between the median pay of employees and the pay of their CEO’s commencing in 2018.
It is not inconceivable that the Australian Government could enact similar legislation given the public mood. Therefore Australian corporations should have well prepared positions.
The New York office of our parent company Weber Shandwick has developed a communications check-list for companies to plan around CEO pay ratio disclosure. It provides invaluable insight for Australian companies that may wish to prepare for the coming debate. The check-list can be downloaded here: Risk Intelligence Alert CEO Pay Ratio Disclosure.