Thursday, May 02, 2013

Top CEO Pay Ratios

High ratios do not guarantee success as JCPenney would probably be the first to admit. [Link]
It’s been almost three years since Congress directed the Securities and Exchange Commission to require public companies to disclose the ratio of their chief executive officers’ compensation to the median of the rest of their employees’. The agency has yet to produce a rule.
Most companies don’t disclose median worker pay, so Bloomberg calculated ratios based on the U.S. government’s industry-specific averages for pay and benefits of rank-and-file workers. This table, searchable by company name, CEO or industry, shows the Standard & Poor’s 500 Index top 250 companies by ratio. Each was offered a chance to respond; their edited comments are listed. READ THE FULL STORY.
I dislike the idea of mandating a maximum wage to reduce pay inequality. At the same time, executive pay keeps ratcheting up from the need to stay competitive to the boards voting to increase each other's pay.
Reporting this seems like a good way to slow that down through the embarrassment of a high ratio.



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