Regulatory: Why the SEC’s Proposed Pay-Ratio Rule will Increase Compliance Costs

The SEC is firming up their controversial proposal for new regulations under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which will require certain public companies to disclose the ratio between CEO compensation and the median pay of rank-and-file employees.  Counsel to such companies are urged to advise clients on the potential backlash from investors, competition, and otherwise.