To comply with SEC rules, a company must disclose which information?

The requirement to publish the ratio of executive to employee pay to shareholders stems from rules established by the Securities and Exchange Commission (SEC) to enhance transparency in executive compensation. This rule is designed to provide shareholders with a clearer understanding of how executive compensation compares to the pay of average employees within the company. By disclosing this ratio, companies enable shareholders to assess whether they are fairly compensating executives relative to the rest of the workforce, which fosters accountability and may influence shareholder voting and investment decisions.

The other choices, while related to executive compensation practices, do not reflect requirements set forth by SEC rules. Linking executive pay to specific monthly performance measures is a management decision rather than a disclosure requirement. Likewise, disclosing executive pay rates to all employees may enhance transparency but is not mandated by SEC regulations. Thus, the only correct disclosure requirement specified is the publication of the executive-to-employee pay ratio.