U.S. companies will be forced to reveal the pay gap between the chief executive officer and their typical worker, handing a new weapon to groups protesting rising income inequality.
The Securities and Exchange Commission is set to vote Wednesday on a rule that will force the new disclosure. The agency has delayed progress on the rule for years, with SEC Chair Mary Jo White facing attacks from unions and Democratic lawmakers in recent months for failing to get it done.
The disclosure is required under the 2010 Dodd-Frank Act, which hasn’t stopped it from splintering the five-member commission. Republican commissioners argue it’s meant to embarrass CEOs and won’t be useful to investors.
White and the SEC’s two Democrats, Luis Aguilar and Kara Stein, are expected to approve the rule. Democrats say the metric will be helpful to investors who are deciding how to vote on executive pay packages.
“As investors increasingly focus on corporate governance and executive compensation issues at public companies, the pay ratio disclosure will provide another metric that is useful on many fronts, such as say‐on‐pay votes,” Stein said in a statement prepared for the meeting.
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3 comments:
A maximum wage, as a multiplier of the lowest paid worker's wage, would do more for the American worker, and the economy, than any tax increase on higher incomes.
I hope my boss makes a LOT of money and is very happy doing so. He gave me this wonderful job that pays me enough to care for my family and save for mu retirement, for which I am eternally grateful. He also provides me with health insurance for me and my family, so I don't have to worry about any major catastrophes!
Thank you, Boss!
It's about darn time.
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