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US follows India on CEO-staff pay ratio

PTI  Washington DC/ New Delhi, September 19, 2013
First Published: 23:42 IST(19/9/2013) | Last Updated: 23:45 IST(19/9/2013)

In an apparent regulatory follow-up to norms already prescribed in India, the US has proposed a new rule requiring listed companies to disclose the ratio of their CEO pay and median staff salary.


While the new rule was proposed by the US markets regulator Securities and Exchange Commission (SEC) on Wednesday night, an exactly similar provision for listed companies in India is already present in the new Companies Act, 2013, which became a law last month.

Even when the bill was yet to be signed into a law, the capital markets regulator, the Securities Exchange Board of India, took a proactive step in 2013 by proposing to incorporate such a provision in its regulations for listed companies.

The SEC, on Wednesday, voted in favour of a new rule that requires companies to disclose the ratio of the compensation of its CEO to the median compensation of its staff.

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