Date of Graduation

12-2015

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Accounting

Advisor

Delery, John

Reader

Lamb, Carly

Abstract

An aftershock of the so called “Great Recession” in 2008, the Dodd-Frank Wall Street Reform and Consumer Protection Act effective July 21, 2010 aimed to increase the transparency of public companies. Section 953(b) of this act is targeting the transparency of executive and employee compensation by requiring the disclosure of a CEO to median employee pay ratio. This disclosure requirement, set to affect all filings with a fiscal year beginning after January 1, 2017, was a response to the public outcry against excessive CEO compensation. Although it does promote the transparency initiative of the Dodd-Frank Act, this disclosure may be wholly unnecessary. Because total CEO compensation is already a required disclosure, this study is examining the benefits and necessity of Section 953(b) by taking into account the driving force behind the ratio and its effect on the business environment.

Keywords

executive compensation, Dodd-Frank, corporations

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