February 28, 2017
The U.S. Securities and Exchange Commission has long delayed the Dodd-Frank law’s requirement that public companies disclose the ratio of their CEO’s pay to the pay of their median worker. It would be outrageous to further delay or reverse progress on that rule now.
As a stockholder, I am a company owner. Working for a corporation, a CEO is protected considerably from personal liability. This is a public protection. This is public power. It reaches beyond the corporation. We, as citizens and shareholders, deserve to know how much a man or woman is paid to wield such corporate power, with little personal consequence.
Americans need and deserve more information about corporate pay practices. Such data helps shareholders guard their pocketbooks against self-seeking executives and it helps us all evaluate the long-term soundness of companies. That’s because excessive compensation at the top encourages risky practices up and down the line—in addition to inhibiting teamwork and reducing employee morale and productivity.
There is simply no excuse to give big corporations a pass about being transparent about their pay practices.