October 12, 2013
I support Dodd-Frank rule 953(b), which strikes me as being all about the intersection of pay equity and investor value.
American workers are more productive than ever, but, year after year, studies show working Americans earning less and less, even as CEO pay balloons and corporate profits soar.
Disclosing corporate pay ratios between CEOs and average employees will finally show which corporations are driving this trend, which siphons money away from investors, and into the pockets of CEOs. In 1990, senior executive pay absorbed 5 percent of corporate profits. Today, according to Government Metrics International, it absorbs 10 percent.
Actually, I don't really believe that such disclosure will limit the bloated executive compensations at all! Of the 25 companies that my wife and I own stock in, only one pays their top execs what I consider to be acceptable total compensations: $3 million or less per exec! When some of the biggest companies are paying their CEOs 25 to 35 million total compensation per year, I can only encourage armed insurrection by the citizens of the US to eliminate not only these over-paid bastards, but also the Boards of Directors who have voted to approve these excessive and burdensome payments. What we really need is legislation to limit the NEO compensations to a more reasonable level, and impose higher tax rates on all of them!
Fairer pay structures mean stronger companies and a stronger economy – both of which are important to me as a consumer and as an investor.
No doubt there are a select few who benefit from the status quo of keeping the pay disparities undisclosed. Stand firm, and implement the law as written.
Thank you for considering my comment,
Samuel L. Vance