Risk & Compliance

Pay Ratio Rule: Tell Us What You Think

A chance for readers to sound off on the issue of requiring CEO-to-worker pay ratio disclosures.
CFO StaffOctober 27, 2015
Pay Ratio Rule: Tell Us What You Think

Here’s your chance to help shape the debate on the CEO pay ratio rule.

Most companies staunchly oppose the rule, which beginning in 2018 will require them to disclose the ratio of the CEO’s compensation to the median pay level among all company workers.

Three experts have already shared their opinions on the matter in this edition of Square-Off (see box). But what do you think? Will the pay ratio rule result in fairer pay for workers of public companies? Will it help shareholders understand how “companies choose to distribute the money earned from productivity gains or new technologies,” as Heather Savkin Corzo believes? And will it also help shareholders ensure that the CEO is not “hoarding all the benefits generated from the team’s success” but instead is [sharing] them more broadly?

A Better Way to Do Ecommerce

A Better Way to Do Ecommerce

Learn how Precision Medical leveraged OneWorld to cut the cost of billing in half and added $2.5M in annual revenue.

In the opposite camp are plenty of experts upset about this transparency measure. They believe it is wrongheaded and “produces a misleading, immaterial, and politically motivated disclosure while creating an administratively burdensome reporting requirement,” as Timothy Bartl writes.

Please use our comment section below to submit your thoughts. We’ll publish the best comments in a future story.

4 Powerful Communication Strategies for Your Next Board Meeting