CEO Pay Ratio Rule in the News
In a recent Forbes article, Glenn Lammi of the Washington Legal Foundation suggests the finalized CEO Pay Ratio rule may lead to unintended consequences that would be counterproductive to advancing pay equity or boosting employee morale. Among other things, he argues that the rule will discourage businesses from hiring lower-skilled workers willing to forego higher wages for employment opportunities. Lisa Botter of Agenda explains that the ratio of CEO compensation to the other named executive officers may be a far more meaningful measure than the CEO to median worker ratio. The article contends that institutional shareholders care more about pay equity within the executive group. Both authors agree that there may be more valuable measures than the Pay Ratio rule in its current form.
- Conflict Minerals and Pay Ratio: SEC Rules Of Unintended Consequences | Forbes | November 13, 2015
- Boards Urged to Prioritize CEO-NEO Pay Ratio | Agenda (subscription required) | November 16, 2015