Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Here´s why the new CEO pay rule could backfire on its advocates
Investor's Business Daily ^ | 08/10/2015 | John Merline

Posted on 08/10/2015 3:33:32 AM PDT by IBD editorial writer

When the Securities and Exchange Commission released its CEO pay rule this week, many cheered it as a way to shame companies into moderating outlandish pay packages.

The rule, which goes into effect in 2017, mandates that publicly-traded companies disclose the gap between what their top executives are paid and what their rank and file workers make.

As the New York Times' Gretchen Morgenson put it, "because the rule will generate an easily graspable and often decidedly shocking number, it may energize a cadre of new combatants in the executive pay fight."

It could have the opposite effect.

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Editorial; Government; News/Current Events
KEYWORDS: ceopay; incomeinequality; sec
Navigation: use the links below to view more comments.
first 1-2021-22 next last

1 posted on 08/10/2015 3:33:33 AM PDT by IBD editorial writer
[ Post Reply | Private Reply | View Replies]

To: IBD editorial writer

It looks like focusing on college professors and the cost of tuition could get more bang for the buck.


2 posted on 08/10/2015 3:40:57 AM PDT by Real Cynic No More (Border Fence Obamacare!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: IBD editorial writer

Man but think of all the liberal CEOs its going to expose as hypocrites.


3 posted on 08/10/2015 4:13:54 AM PDT by jsanders2001
[ Post Reply | Private Reply | To 1 | View Replies]

To: IBD editorial writer

I could care less what my CEO makes. He risked the capital to start the business, directed it’s growth, and about 600 of us have jobs. Why put up barriers in front of such people or try to shame them. The author of this regulation should read Atlas Shrugged.


4 posted on 08/10/2015 4:37:39 AM PDT by Made In The USA (Yes Ma'am, I said I'd like three sides of bacon with my eggs. and bacon.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Made In The USA

I don’t care about the “gap” between CEO snd employee pay,and employees have no right to know CEO pay, but the shareholders who OWN the company absolutely have a right to know what the CEO makes.

Some CEOs are worth even more than they make and others are overpaid. Management of many public corporations are effectively “skimming off the top”.

Also, most CEOs of major companies are employees not founders who took a big risk and invested their own money.


5 posted on 08/10/2015 4:51:02 AM PDT by Above My Pay Grade (Donald Trump: New York City Liberal)
[ Post Reply | Private Reply | To 4 | View Replies]

To: IBD editorial writer

Forbes had done this for years.....

http://www.forbes.com/lists/2012/12/ceo-compensation-12_land.html

Rank
Name
Company
1-Year Pay ($mil)
5 Year Pay ($mil)
Shares Owned ($mil)
Age
Efficiency
178
Sheldon G Adelson
Las Vegas Sands 9.565 23.26 19,207.0 78 156
18
Richard C Adkerson
Freeport-McMoRan Copper & Gold 39.535 183.22 117.5 65 106
468
Daniel F Akerson
General Motors 1.7 - 6.5 63 -
426
Nicholas K Akins
American Electric Power 2.816 - 0.0 52 -
275
Anthony J Alexander
FirstEnergy 6.165 43.04 20.4 60 163
211
Samuel R Allen
Deere & Co 8.3 19.193 6.5 58 -
83
Daniel P Amos
Aflac 17.13 141.78 249.7 60 133
305
Gerard M Anderson
DTE Energy 5.4 - 10.7 54 -
130
Richard H Anderson
Delta Air Lines 13.175 20.932 17.9 56 -
159
Lamberto Andreotti
Bristol-Myers Squibb 10.85 28.243 9.1 61 -


6 posted on 08/10/2015 5:09:36 AM PDT by bert ((K.E.; N.P.; GOPc.;+12, 73, .. Iran deal & holocaust: Obama's batting clean up for Adolph Hitler)
[ Post Reply | Private Reply | To 1 | View Replies]

To: IBD editorial writer

I was on vacation with relatives when this headline came out.

My sis and B-I-L seemed to think that this was a good thing, until I remarked that, if the government can control the salaries of these incredibly powerful people, imagine what they can do to little ol’ YOU!


7 posted on 08/10/2015 5:19:04 AM PDT by left that other site (You shall know the Truth, and The Truth Shall Set You Free.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: IBD editorial writer

Why is the CEO’s salary any concern of mine?


8 posted on 08/10/2015 5:48:07 AM PDT by TBP (Obama lies, Granny dies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: left that other site

And when the embers of envy make the iron hot enough, the elite will strike.
Do not be surprised when they will be glad to sacrifice for the cause as long as everyone else isn’t getting ahead of them (of course the elite providers are exempt).


9 posted on 08/10/2015 6:03:34 AM PDT by griswold3 (Just another unlicensed nonconformist in am dangerous Liberal world.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: left that other site

Bingo on that point.
Big brother dictates how much everyone makes to make it fair. From each according to their ability, to each according to their need.


10 posted on 08/10/2015 6:59:07 AM PDT by Texas resident (The democrat party is the CPUSA)
[ Post Reply | Private Reply | To 7 | View Replies]

To: griswold3

Indeed.

the very people (the elites) who will be affected by this are mostly liberals.

Karma! :-)


11 posted on 08/10/2015 7:00:04 AM PDT by left that other site (You shall know the Truth, and The Truth Shall Set You Free.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Texas resident

Yes Indeed.

I think it was Jefferson who said that a government that is big enough to give you everything is also big enough to take everything away from you!


12 posted on 08/10/2015 7:01:21 AM PDT by left that other site (You shall know the Truth, and The Truth Shall Set You Free.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: IBD editorial writer

Isn’t CEO pay a tax dodge? The more they get the more the company gets to write off? In return some of these ceo’s give lots of money to politicians as a payoff?


13 posted on 08/10/2015 10:24:26 AM PDT by minnesota_bound
[ Post Reply | Private Reply | To 1 | View Replies]

To: IBD editorial writer

CEO pay rules pretty much always fail. Most CEOs did not get where they are by being stupid and they are generally much smarter than the idiots writing the rules.


14 posted on 08/10/2015 10:36:36 AM PDT by jospehm20
[ Post Reply | Private Reply | To 1 | View Replies]

To: left that other site

Jefferson never said it. Gerald Ford used it in an address to Congress in 1974.

http://www.monticello.org/site/jefferson/government-big-enough-give-you-everything-you-wantquotation


15 posted on 08/10/2015 10:44:24 AM PDT by jospehm20
[ Post Reply | Private Reply | To 12 | View Replies]

To: jospehm20

OK...I knew I remembered it from somewhere.

It’s true, though.


16 posted on 08/10/2015 10:45:21 AM PDT by left that other site (You shall know the Truth, and The Truth Shall Set You Free.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: left that other site

Yes it is. I was very surprised when I saw it attributed to Ford a few years ago. Maybe he was much smarter than the media made him out to be.


17 posted on 08/10/2015 10:47:19 AM PDT by jospehm20
[ Post Reply | Private Reply | To 16 | View Replies]

To: Made In The USA
I could care less what my CEO makes. He risked the capital to start the business, directed it’s growth, and about 600 of us have jobs.

Not likely. The vast majority of CEOs, executives, and directors of corporations have never "risked" a dime of their own capital.

The vast majority of executive and director people today are flaming liberals who attended school with other flaming liberals, who studied under professors who were mostly flaming liberals. Commies; anti-capitalists; the whole bunch.

Perhaps a small percentage of CEOs actually started and built a business, but they are an extreme minority.

18 posted on 08/10/2015 10:55:45 AM PDT by meadsjn
[ Post Reply | Private Reply | To 4 | View Replies]

To: jospehm20

Well, Chevy Chase made sure of that!


19 posted on 08/10/2015 4:42:01 PM PDT by left that other site (You shall know the Truth, and The Truth Shall Set You Free.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: meadsjn; Made In The USA

I think the poster was referring to HIS CEO,not all CEOs.

.


20 posted on 08/10/2015 5:31:18 PM PDT by Mears
[ Post Reply | Private Reply | To 18 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-22 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson