September 24, 2013
I’m writing in support of a strong Dodd-Frank rule 953(b).
My Dad was a vice president of finance and treasurer of a Fortune 250 company in the 1960s. He made a very good living, put 4 kids through college, was able to retire at 50 years of age and lived a very comfortable retirement for 38 years, able to help many people and charities with what he had earned. My mom has outlived him by 6 years so far, and we won't have to worry about her financial support ever. His generous salary financed all that security, as he didn't come from money. In inflation adjusted dollars, his salary was about 10% of what comparable positions pay today. In 2005, when my dad and I discussed current executive compensation, he was appalled, and said "That's not a compensation package, that's a lottery payout!"
Everyone should be aware of what executives are paying themselves relative to the average worker, because those executives have rigged the game to reap all the benefits of the productivity improvements of the last few decades, rather than allowing those benefits to accrue to everyone who earned them.
Disclosing corporate pay ratios between CEOs and average employees will discourage the outrageous and reckless pay practices that fueled the 2008 crash.
Knowing which corporations heap riches upon their executives while squeezing struggling employees also will be a useful factor for me when considering which businesses to support with my consumer and investment dollars.
I am aware that you are under intense pressure by business interests to weaken or abandon the rule. Do not give in. Instead, weigh your duty to protect investors and the American public against the self-serving interests of those seeking to undermine this rule.
Joan CordenizLake Bluff, IL