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SEC Provides Additional Pay Ratio Interpretive Guidance

The Securities and Exchange Commission (SEC) yesterday issued interpretive guidance on the CEO pay ratio rule. Separately, the SEC’s Division of Corporation Finance issued guidance on calculation of the pay ratio. These moves suggest that the SEC is not expected to defer the effectiveness of the rule and that it will be in place for the 2018 proxy season.

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New Proposed Rules on Deferred Compensation Plans of Tax-Exempt and Governmental Employers

Practices: Executive Compensation & Employee Benefits, Tax-Exempt Organizations

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