February 28, 2017
It is outrageous that the U.S. Securities and Exchange Commission has delayed acting on 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 is worse that this very basic disclosure will now be reversed.
Americans need and deserve more information about corporate pay practices. Because as a shareholder it would protect me from losing money in companies with executives who raid the company. And it will allow me to evaluate the long-term soundness of the companies my money is invested in because excessive compensation at the top encourages risky practices up and down the line. From personal employment experience I know what it is like to work in top-heavy companies and how it makes corporate statements about teamwork, employee morale and productivity an inside joke.
The law says that big corporations should be transparent about their pay practices, and inaction is against the law.