March 1, 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.
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.
Many CEOs I have met have not been able to answer questions about the products the employees make. They refer the questions to other managers, they fly business or first class to go to fancy events, only as a business representative as they bring managers to answer questions, and they receive outrageous salaries and bonuses. Their contracts are often written by lawyers who represent them, making outrageous demands. We should have a law that makes their contracts null and void if they harm the working middle class people salaries.
Eric G. Osterberg