January 18, 2014
Executive Compensation including CEO compensation is sky high when compared to the median compensation of their employees. It has become a social and political issue in the USA.
It is also an issue from a fair labor point of view in that executives appear to be taking advantage of their power to feather their nests while offering crumbs to their employees. Hence the CEO to median employee compensation ratio (Wage Gap) has been significantly creeping upwards over the past couple of decades. This form of worker discrimination will lead to no social good if it continues unchecked.
In addition, the Wage Gap in the US is significantly higher than in any of the other developed countries.
Therefore anything the SEC can do to force companies to be more transparent in publishing their Wage Gap will be helpful in promoting investor and public discussion that hopefully will help curb or even reverse Wage Gap creep.
I am in favor of this regulation.