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?

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.

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One response to “Pay Ratio Rule: Tell Us What You Think”

  1. The Pay Ratio will just make some if not all SEC Issuers look ridiculously stupid in how they pay leadership vs. the worker bees. In order to close the gap, we all know what needs to happen: Lower the outrageous executive compensation packages and spread that excess compensation across the organization. A CEO can make a $500,000 – $1 million+ salary plus lucrative benefits, but the President of the United States can only make $400,000 (with some if not more lucrative benefits)? Hopefully, the Median employee can get a little more take-home pay as a result of this, but that about it. This pay ratio cannot be a comparable metric across companies or industries due to markets, cost of living adjustments (just here in the U.S. alone). What’s even more sad is that the cost of complying with this rule will exceed the total compensation of that lucky median employee. At the end of the day, the Board of Directors and Compensation Committees have final say but they have their hands tied. Oh and if the company isn’t making money and value for shareholders by INCENTIVIZING the entire workforce, something has to change…

    Ok, rant over… back to your regularly-scheduled programming.

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