Posted on 08/05/2015 1:24:47 PM PDT by PROCON
WASHINGTON (AP) -- Federal regulators have approved a long-delayed rule requiring companies to reveal the pay gap between CEOs and their employees.
The Securities and Exchange Commission voted Wednesday to order most public companies to disclose the ratio between their chief executives' annual compensation and median, or midpoint, employee pay.
(Excerpt) Read more at hosted.ap.org ...
“What difference does it make to the stockholders?”
They’re part owners. If it’s being abused, they can vote to change it.
The situation with public corporations is not what it used to be. Decisions are made by mutual funds and others who hold massive numbers of shares, and they have no priorities except the owners.
I don't see anything wrong with an end to bonuses to people for doing their job. If they don't do their jobs they should be fired, so why a bonus for doing what's expected? And why huge financial gifts when they leave?
Executive pay is fully disclosed to sec and shareholders already.
“...I think publicly traded corporations
should provide (CEO-vs-worker pay gap)
info to their stockholders...”
-
This information is available to those who care to look for it.
What is a “correct” or “acceptable” number?
What would you do differently if you knew the exact number?
How would you behave any differently if you knew the exact number?
It is not something that I concern myself with in my investments.
How about college professors and administrators?
0bama makes $400,000/yr salary.
the white house interns bet paid... $0
slave wages.
dems always try to ‘fix’ the perceived problems of others while completely disregarding their own.
I think publicly traded companies already provide compensation for top execs
So are the ChiComs going to cooperate?
If what’s being abused?
Had ENOUGH Yet ?
As free market supporters we should be a little concerned about this. Stock ownership is so diluted that CEOs essentially run the company for personal benefit. Pay and perks don’t correlate to performance. CEOs are known to stack boards, give them special stock perks and/or ply them with free flights on corporate jets, trips overseas to ‘meetings’, etc.
Ideally, we’d go back to the Lochner days and these guys could be driven out of business as appropriate. Instead we’ve got cronyism and window dressing like this.
My understanding is that it only affects publicly traded companies. If it’s actually the CEO’s company (i.e. privately held) then he doesn’t have to disclose. If it’s not a privately held company it’s not truly his (it’s owned by the shareholders).
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