As an employee, would you want to see how your paychecks stacked up against your boss’? The US Securities and Exchange Commission approved a controversial CEO pay rule that lets workers do just that.
CCTV’s Rachelle Akuffo filed this report.
The widening wage gap in the USAs an employee, would you want to see how your paychecks stacked up against your boss'? The US Securities and Exchange Commission approved a controversial CEO pay rule that lets workers do just that.
- A new SEC rule requires CEOs of public companies to show how their salaries stack up against an average worker from the company.
- The U.S. Congress required it as part of its Wall Street reforms in the aftermath of the 2009 financial crisis.
- Among the Organization for Economic Cooperation and Development countries, the United States has the largest disparity between CEOs and median employees.
- Supporters hope the move will shame companies into justifying excessive salaries and improving conditions for employees.
- Critics say exposing the pay ratio won’t necessarily lead to a change in compensation and could breed discontent and low morale for employees.
Stewart Acuff and Eric Marquardt on the new CEO pay rule
For a look at the new CEO pay rule, Stewart Acuff and Eric Marquardt joined CCTV America in New York. Acuff is the former Organizing Director at the American Federation of Labor and Congress of Industrial Organizations and Marquardt is a partner at Pay Governance and joins us live from Saint Louis.