March 25, 2017
I heartily support the pay disclosure law requiring corporations to disclose the gap between their CEO and median worker pay. This is important information for investors and consumers to know in determining their possible support of a company. A very large gap between CEO and average worker pay suggests a top heavy and unstable corporate structure. Research shows that unexplained pay disparity is linked with poorer subsequent firm performance. It can also provide a view on a company's workforce management approach, which can have a great impact on a companies longterm viability and sustainability.
It is in the best interest of our national economy to have stable, healthy corporate workplace environments as well as businesses that are viable for many years to come. The pay disclosure law also provides an important indicator for these types of companies.
I understand that the SEC's final pay disclosure rule has a flexible and balanced approach to compliance with this rule and I applaud the SEC for that. I also believe that corporations that feel unable to comply with this rule may benefit from taking a closer look at the circumstances preventing them from making these calculations, and also from the clearer picture of their company that compliance with the pay disclosure law would provide.