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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