The Securities and Exchange Commission approved this week a rule that will require publicly traded companies to disclose the ratio of CEO pay to the average employee pay. This rule has been pending approval since Dodd-Frank legislation in 2010, and has been a source of continuing conflict and controversy.
Now I’m not generally on the political side that opts for income equality, because I believe that people should be rewarded based on their hard work and that in reality, you can never truly have income equality when jobs and work are not equal. But this rule makes great sense to me. It might be because I’ve seen corporate compensation rationalization at work for too long. I have vented about executive pay before, and so I must again. (more…)