In a move supporters are cheering as a victory for workers—and filing under the "better late than never" category on the part of the government—the Securities and Exchange Commission on Wednesday voted to adopt new rules requiring a public company to disclose the pay ratio between its CEO and employees.
I suspect that anyone who complains about newly disclosed pay ratio disparitys will be layed off or for some unspecified reason loose their job . "don’t mean shit foont "
The SEC law has no teeth…it only mandates disclosure and not reform. Salaries and compensation/perquisites for corporate executives are a matter of public record. What is not readily accessible is the ACTUAL pay of the laborers that produce the goods for comparison. Salaries and benefits of the workers that are published (usually during labor strife) by the corporations are distorted in that the figures they come up with are those that reflect what it supposedly costs the company to employ them.
And it only took FIVE years to get this crumb. What a joke.
CEO-Worker pay ratio, or as the CEO’s will call it, “Bragging Rights.”
Forbes, your new annual list is here.
“The U.S. Chamber of Commerce has argued that the rule would force companies to spend an average of 1,825 hours, at a cost of $311,800, to produce the ratio.”
The Chamber has obviously not heard of Excel. This puke of an organization is pure evil.
This is a sop to Senator Warren who is hot on the tail of the ineffective and politically compromised SEC Chief Mary Jo White.
And then not effective until 2017…
What a bunch of horse puckey. Maybe a few small companies don’t have this information in a database, but I guarantee you that the medium and larges ones do. And yes, Excel, or Access if they want to get “fancy”…
They spent 1,825 hours, at a cost of $311,800, to produce this ridiculous figure.
“The only barrier here is Wall Street’s fear of embarrassment.”
- Embarrassment? Hell, they’d be about as embarrassed as a couple of kids in a school locker room measuring their pricks to see who had the longest! (“No fair stretching it!”)
This is essentially correct. We need to dis-empower the corporatist executives, and institute workplace democracy and social and ecological accountability as the foundations of the economy.
Small potatoes like disclosure of CEO compensation - OMG can you imagine the indignity! - well-intended and inarguable as they are - at this late stage of empire, with ecological breakdown underway and civilizational breakdown a near-term consequence - serve primarily as milestones of our failure to grasp, articulate, and carry out the necessary humanizing transformation / revolution of consciousness and the political economy.
OK so we won a limited disclosure of CEO compensation. How about we unseat the CEO?
Excel is labor-intensive compared to any database engine, e.g. MariaDB. One query would produce the information for even the largest corp in, probably, less than 20 minutes.
What really amazes me is that most of the Chamber’s active members are small business people and the Chamber actually lobbies for large businesses and their interests at the detriment to small businesses.
i agree.it only took five years to get this quanta sized crumb! and its no good until 2017! by then some bankster scum will figure out how to avoid it a la the Banking Repair bill of 2010,where all of the useful parts havent been actually put into effect yet. maybe 2017 will be our lucky year for that too. of course its doubtful that our deficit ridden bankster fraud financial system will be around by then as a mere sneeze will topple that fake house of cards (to our detriment only ,im sure) and send our ceo scum to foriegn shores where they can run their "Free Market " (where the 99% always pick up the tab when the crapitolists bankster scams comes undone,making it “free” for them) b.s. on someone else.
hmmm, you know even with the crash of the dollar,hyper inflation,Super Great Depression times and the assorted terrible hardships that are on their way it might almost be worth it just to be rid of this sociopathic , if not down right insane, war mongering, conscienceless wealthy class…
The tax rate that CEO’s pay should be linked to how they are compensated compared to the average worker in their business. For example- if they are payed 40 times the average worker they would pay Uncle Sam at a 25% tax rate. If their compensation is 75 times the average worker, they would be taxed at a 39% rate. If they get 100 times the average worker, much of what they earned would be taxed at a 50% rate. That would force the CEO to make a choice: either share the profits with his workforce or give it to Uncle Sam later on.
Your numbers are very generous – to them. How about if they’re paid 40x they’re taxed 50x, 100x tax at 75x comp, and if 100x comp, 1000x tax. With all forms of comp being counted.
Unfortunately, while We the People starve and live in the streets, the Oilagarchy, with their tons of gold stashed in Swiss Banks, their hordes of precious stones, and their secure and mercenary protected properties all over the world will just laugh and say, “So long, it’s been good to know ya!”
- I’d love to see the people invest in huge quantities of tar, feathers, fence rails and good stout hemp rope! Properly used, that could make a difference.
I agree completely with the ratios and tax amounts that you have mentioned. When profits are up and the company is doing great, many CEO’s must feel it is because they are a genius and that it has nothing do with a more productive workforce doing exceptionally well for the business. They have to be forced to share the wealth with the employees and I think this is a solution that would work. Wish our Congress and Senate felt the same way.
There is another problem in that many (majority of) CEO’s, CFO’s, and presidents of the major corporations (Fortune 500) include in their platinum contracts clauses that pass the payment of their personal income taxes onto the corporations they work for that in turn reduce their tax liability (if they pay any at all) as those payments are deductible. Lee Raymond, former CEO of Exxon-Mobil until 2005 is a prime example and I would bet that the current CEO, Rex Tillerson has the same perquisite in his contract. These corporate executive contracts are approved by the BoD (all their cronies) and sometimes by the major shareholders. Just think of all the other CEO’s of the myriad branch companies of Exxon Mobil around the world making bank and having their divisions pay their taxes. EM is the 5th largest “supermajor” in the world in revenues.
- Are all the very-highly-paid vice presidents, etc. going to be included with the janitors when determining that “median” wage? That could skew the results considerably.
- Will the company start “loaning” the CEO a multi-million-dollar house, car, vacation, etc.? (Or some such method of lowering his costs without raising his income).
- On our side: Will average Joe quit using the services of those companies with outrageous ratios?