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How will employees react to pay ratio disclosures?

Starting in 2018, the pay gap between company CEOs and employees will be public information. Preparing for employees' reaction tops employers' list of concerns.

By Emily Payne | Updated on October 05, 2017
Nearly half of respondents also said they haven’t considered how or if they will share the disclosure with employees. (Photo: Shutterstock)

The SEC’s new pay ratio disclosure rules take effect in 2018, requiring public companies in the U.S. to be more transparent about how they compensate employees. Companies will be required to disclose the median annual compensation of all employees, excluding the CEO; the annual compensation of the CEO; and the ratio of those totals.

How will employees react to those numbers? That’s U.S. companies’ greatest concern, according to a recent poll by Willis Towers Watson. Half of all companies surveyed said their biggest challenge is forecasting how employees will react.

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