1. As SEC Adopts CEO Pay Ratio Rule, What Will It Mean For Investors And Workers?

    As SEC Adopts CEO Pay Ratio Rule, What Will It Mean For Investors And Workers?

    The Securities and Exchange Commission adopted a “pay ratio” rule Wednesday that will force publicly traded companies to disclose a comparisons between what top executives earn and the salaries of workers. The vote will bring to life a few controversial lines written into the Dodd-Frank financial reform law in 2010 that have existed in a state of suspended animation amid resistance from major corporations and business trade groups...

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    1. It's going to be a big number. It's going to disrupt the operations of the company.
    2. I think it's going to force companies to refigure CEO pay, and realign it for how pay is constructed for the rest of the organization.
    3. For an investor, this is not about the embarrassment factor.
    4. The comparison to everyone else means there's just this pressure to make the number higher and higher.
    5. It provides the compensation committee with an incentive to pay less in [executive] compensation in order to have a good ratio.
    6. There will be a cost to it, and that cost will result in companies paying attention to things that don't have significant impact
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