The Securities and Exchange Commission (SEC) voted on Sept. 18 to propose new rules that would require publicly traded companies to report the ratio between the compensation of chief executive officers and the median pay of their employees.
Public companies must already report total CEO compensation; it’s required by the 2010 Dodd-Frank financial reform law. The proposed SEC rule would require two more reports: median employee pay and the ratio between CEO and employee pay.
After a 60-day comment period, the SEC will vote to accept or reject the rule, which was written into (but not implemented by) Dodd-Frank.
Current estimates peg the average CEO-to-employee-pay ratio at somewhere between 230:1 and 380:1. In 1965, the ratio was 20:1, according to the Economic Policy Institute.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/36734/sec-rule-would-highlight-ceo-compensation-ratios "
- Consider offering the best-ever retirement benefit
- Be ready to explain male/female pay disparity—dating back to the time salaries began to diverge
- Track pay and experience, adjust wages accordingly
- The Florida tests: Are workers employees or independent contractors?
- When equipment must start up, when does work begin?