October 21, 2013
Dear Securities and Exchange Commission:
I strongly support the SEC’s proposal requiring companies to disclose the CEO-to-median worker pay ratio, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Pay ratio disclosure will help investors like myself evaluate CEO pay levels when voting on executive compensation matters. I currently trade with TD Ameritrade and hold investments in more than 7 companies. The ratio of CEO-to-worker pay is a valuable metric for investors because it places CEO pay levels into a broader perspective. For example, investors may use pay ratios as a factor when casting say-on-pay votes.
Pay ratio disclosure will also help investors better understand their company’s overall compensation for all employees. High CEO-to-worker pay ratios can have a negative impact on employee morale and productivity. Disclosure of pay ratios will help the capital markets better allocate capital to those companies that invest in their workforces.
Sincerely,
Jackie Tortora
Falls Church, VA