September 19, 2013
Transparency and disclosure are usually always in the best interest of any government or organization. And by contrasting CEO pay with the median pay it will hopefully draw greater scrutiny and interest from the public.
However, the only true way to include "teeth" to such proposals is to make the "all important board of directors" more accountable to the shareholders. With the passage of Dodd Frank, shareholders can now vote on compensation packages, but their vote carries no authority or "teeth." Shareholder votes, such as this proposed disclosure rule, can "shame" corporations. However, until shareholder voting is binding and has "teeth," the rest of these rules will have little effect.