New academic analysis pulls no punches, calling the ratio "lacking in accuracy, difficult to interpret, and incomplete."
Doug McMillon outearned the typical Walmart employee by a ratio of 1,888 to 1 in 2017, the company discloses.
The first round of proxy statements after the new pay ratio rule took effect underscores inherent flaws in the rule.
Despite new guidance on how to calculate the ratio, questions as to the rule's usefulness persist.
In a word, no. In fact, a high ratio is associated with, although it does not cause, stronger earnings and stock performance, a new study finds.
Companies may use any "reasonable" measure to show how CEO pay compares to the median annual total compensation of other employees.
Companies can expect a lot of questions from employees when the requirement to disclose the ratio takes effect in 2018.
Executives and boards should be prepared to address these issues with shareholders at annual meetings this year.
Three very interested observers of the executive compensation arena offer three distinctly different viewpoints on the latest major Dodd-Frank development.
The disclosures are misleading and create an unjustified burden on companies, says Timothy J. Bartl of the Center On Executive Compensation.
High CEO pay relative to other employees can erode morale, productivity, and loyalty, and thus the bottom line, says an AFL-CIO offical.
With employees knowing a company's median pay level, those both below and above may have a lot of new questions.
