September 25, 2013
I’m writing in support of a strong Dodd-Frank rule 953(b).
Disclosing corporate pay ratios between CEOs and average employees will discourage the outrageous and reckless pay practices that fueled the 2008 crash.
Having recently finished 48 years of employment, mostly in corporations, I know that successful business results are obtained by all employees of the business doing their jobs well individually, as well as working well together. The contributions to company success made by management, especially top management, rarely justify the enormous gulf between their pay and that of the bulk of their workers.
Executive compensation is not determined by free market supply and demand; it's set by corporate boards of directors, who are usually executives or ex-executives of other corporations and are, in effect, just taking care of "one of their own."
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.
Thank you for considering my comment,
William Schoene
Santa Monica, CA