Date of Graduation
12-2015
Document Type
Thesis
Degree Name
Bachelor of Science in Business Administration
Degree Level
Undergraduate
Department
Accounting
Advisor/Mentor
Delery, John
Committee Member/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
Citation
Stanfill, A. (2015). How Relevant is the Disclosure of a CEO Pay Ratio?. Accounting Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/acctuht/19
Included in
Accounting Commons, Benefits and Compensation Commons, Finance and Financial Management Commons