Congratulations, 99%, you are one small step closer to dismantling corporate plutocracy.
On August 5, fulfilling one of its obligations from the 2010 Dodd-Frank, the Securities and Exchange Commission issued a long-awaited rule that will mandate that publicly-traded corporations disclose the ratios between CEO pay and the median pay of employees. The rule was bitterly contested by corporations, who argued, with no apparent irony, that it would be too costly to implement. The earliest the disclosures would become public is in early 2018 — if it survives an expected legal challenge.
The Center on Executive Compensation, which opposed the rule, said in a statement, “Only a small segment of shareholders, primarily unions, certain pension funds and social activists, are likely to use the pay ratio to drive their own narrowly tailored agendas.” There you have it: paying workers more generously in order to improve productivity, morale and retention is a narrowly tailored agenda. We thought it was called “good business sense.”Tags: CEO pay, Securities and Exchange Commission