Companies Must Reveal CEOs Pay Compared To Workers

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Sometimes I think it is better not to know how much the CEO of your company makes compared to you. ;)

Five years ago, the Dodd-Frank financial reform legislation directed the Securities and Exchange Commission to come up with rules requiring American companies to calculate and report the ratio between a CEO’s pay and that of the company’s typical employee. After repeated delays and claims from big business that the math was too complicated, the SEC has finally voted to approve these rules.
 
maybe this will get people mad at people who make 500x more than the company's typical worker vs being pissed at the people who want to make more than $8 an hour
 
I haven't read the link but it will be interesting to see how they come up with it since some CEOs get stock options and don't necessarily draw a large annual salary.
 
Oh, boy. CEO shaming via executive fiat. This will solve all our problems!
 
TMCM said:
maybe this will get people mad at people who make 500x more than the company's typical worker vs being pissed at the people who want to make more than $8 an hour
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and how in the world is that going to fix anything?

CEO will just lay folks off and make more
 
Bigbacon said:
and how in the world is that going to fix anything?

CEO will just lay folks off and make more
Click to expand...

That.....wouldn't work in the CEO's favor in any way....

Layoff more workers, the ratio becomes even more lopsided.
Layoff more workers and pay the CEO more, the ratio becomes even more lopsided.
Layoff more workers and potentially effect your companies ability to sell its services/products...less money into company, bad look for CEO, CEO's job then is on the line.

There's a stipulation in there that companies don't have to include overseas workers, especially in countries where it would violate privacy laws of that foreign country. I see this as being the legal loophole that gets exploited somehow.
 
I already know what mine makes. 4x my salary. It's pretty reasonable, but we only have ~275 people.
 
The math is too complicated? Lol. Select batch of employees, mind mean for batch. Compare to CEO and calculate ratio.
 
I want see how much more Hillary's $200,000 speaking fee is compared to the lowest paid person in the room.
 
TMCM said:
maybe this will get people mad at people who make 500x more than the company's typical worker vs being pissed at the people who want to make more than $8 an hour
Click to expand...

Bow down before your job creators you worthless peon.
 
TMCM said:
maybe this will get people mad at people who make 500x more than the company's typical worker vs being pissed at the people who want to make more than $8 an hour
Click to expand...

They can go get an education and stop trying to raise a family on a minimum wage job. I am now donning my flame suit for the Incoming pity rants how the underprivileged can't get an education...
 
Why is it for only CEO's? I would love to know my co-workers pay, then I could go to my CEO and tell them for 50% of what you paid that loser of a coworker I can do his\her work that I'm already doing and you can fire them.

Seems a bit one sided in my view.
 
delahaya said:
I want see how much more Hillary's $200,000 speaking fee is compared to the lowest paid person in the room.
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Just a couple hours until some idiot posted this. Im actually amazed it took an idiot this long to click the comment link!
 
Call me old fashioned -- why is it anyone's business what he or she makes? If they do this for the CEO, why can't we find out what every one of our bosses makes? Where does the line get drawn?

I may only be 33 but it USED to be a professional to not discuss money/salary. No matter how bad you want to know, it's still none of your business how much someone else makes. If you truly believe you are being shafted or taken advantage of, quit and find a (better paying) job.
 
How would this work with contacting firms? I mean, I work for company A, which has an HR contract to supply people to company B, who has an IT contract to do work supporting company C.
So while I work at company C, I'm a fulltime employee of company A, under the company B contract.

Who is my CEO?
 
Climber said:
They can go get an education and stop trying to raise a family on a minimum wage job. I am now donning my flame suit for the Incoming pity rants how the underprivileged can't get an education...
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Bachelor and Master degrees are not considered "an education" anymore? :confused:

If you mean PhD's and Law degrees...well, employers are hiring those even less.

Is an MD or equivalent medical doctor degree the only one considered "an education" now?

It's kind of hard for everyone in the country to be accepted into medical school, especially since medical schools artificially limit applicants (meaning they let in only a minority of those deemed capable of successfully completing the programs) in order to keep pay and employment rates high for graduates.
 
collegeboy69us said:
Call me old fashioned -- why is it anyone's business what he or she makes? If they do this for the CEO, why can't we find out what every one of our bosses makes? Where does the line get drawn?

I may only be 33 but it USED to be a professional to not discuss money/salary. No matter how bad you want to know, it's still none of your business how much someone else makes. If you truly believe you are being shafted or taken advantage of, quit and find a (better paying) job.
Click to expand...

The world is changing and so is the landscape of employment and people - employees, I should say, are most likely getting a bit tired of being screwed over in the long run. I've never found it quite right to see the "average Joe" type public facing employees of companies making rather pithy amounts of money for their work while "executives" tend to make insanely large amounts of money for whatever it is they do (shuffle a lot of paper and figures around and take a lot of meetings, who knows).

Call me old fashioned (and I am given my age) but I really think that no human being anywhere working at any company for whatever period of time even if they created it from nothing but sweat and tears deserves or should be paid more than a million bucks a year but again that's just me.

"just quit and find a (better paying) job" is rarely a solution in today's world. In fact, most times if someone just up and quits because of the situation being untenable they may find themselves unable to get another one for extended periods of time.

Life sucks these days for "the common people" and it's just getting worse. My Dad helped create the middle class that caused so much prosperity in America in the mid-1900's and fought in WWII and Korea; if he were alive today he'd be giving the finger to the U.S. flag and telling the President (whoever the hell it happened to be) and Congress and big business to go fuck themselves which in all honesty isn't such a bad idea.
 
Climber said:
They can go get an education and stop trying to raise a family on a minimum wage job. I am now donning my flame suit for the Incoming pity rants how the underprivileged can't get an education...
Click to expand...

Good luck affording an education on minimum wage. Or even entry level positions.
 
Flogger23m said:
Good luck affording an education on minimum wage. Or even entry level positions.
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And good luck trying to find an employer who would be willing to give you flexible working hours so you could attend said education classes.
My guess, they would kick you out the door and replace you with somebody else in a heartbeat. What do you expect from a job paying you $8/hr? Healthcare benefits and retirement??? Yeah!
 
iamwhoiamtoday said:
How would this work with contacting firms? I mean, I work for company A, which has an HR contract to supply people to company B, who has an IT contract to do work supporting company C.
So while I work at company C, I'm a fulltime employee of company A, under the company B contract.

Who is my CEO?
Click to expand...

Whoever is paying you directly.

What difference will this make? Get people to be bitter? Demand for more pay? Sorry, but I don't see any benefit, singling out CEOs. If you're gonna do it, do it to everyone. I personally don't really care if my pay is known by other people, but I know their are people who are sensitive about it.
 
GearChoices said:
You can get student loans. But then good luck getting a job to pay them back (or any other bills) afterwards...
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Everything is done to keep the ones at the bottom where they are currently.
And yet, you will see a lot of people encourage others to look for a better job.
Newsflash; the days are over where you could just quit your job for a better position! Chances you will find better than what people are doing now are minimal. Not with the labor laws in effect that allow employers to do as they please with their employees.
 
So here's my question: why should the SEC care about this, other than purely political motives? It's not anything that will improve the accuracy of financial reports or transparency of corporate finance.
 
collegeboy69us said:
Call me old fashioned -- why is it anyone's business what he or she makes? If they do this for the CEO, why can't we find out what every one of our bosses makes? Where does the line get drawn?

I may only be 33 but it USED to be a professional to not discuss money/salary. No matter how bad you want to know, it's still none of your business how much someone else makes. If you truly believe you are being shafted or taken advantage of, quit and find a (better paying) job.
Click to expand...

You are correct it's not anyone's business, and it's still professional not to discuss salary. Politicians live off getting people to fight one another and envy aka "class warfare" is a strong motivator to the masses and it pays off for our political leaders. The line never gets drawn until the collapse then we get to start over if your manage to live through it. I would jump ship if there was a better place like my forefathers before me when they came over during the time of the "evil robber barrons" destroying the working man... lol
 
Terpfen said:
Oh, boy. CEO shaming via executive fiat. This will solve all our problems!
Click to expand...

But solving problems was never the reason this was enacted.
It's all about creating more divisiveness and envy.
That way the politicians can promise to fix it, but only if you vote for them.
 
collegeboy69us said:
Call me old fashioned -- why is it anyone's business what he or she makes? If they do this for the CEO, why can't we find out what every one of our bosses makes? Where does the line get drawn?
Click to expand...
Publicly traded company, that means their books are open for all to see, which means every expenditure, and CEO's is probably specific because they'll make significantly more than the average person, have a right to see what the company is spending it's money on.
 
GearChoices said:
Bachelor and Master degrees are not considered "an education" anymore? :confused:

If you mean PhD's and Law degrees...well, employers are hiring those even less.
Click to expand...

So you are saying that some people with Bachelor and Master degrees are only making $8 an hour?

If so, they must really be unmotivated employees, or have degrees is something like under water basket weaving.

I only have an AA, yet I make more than the national average for people with Master degrees.
 
Bigbacon said:
and how in the world is that going to fix anything?

CEO will just lay folks off and make more
Click to expand...

Companies that waste allot of money on CEOs will probably indicate bad financial management, affecting investment. If your company of choice is wasting a noticeable chunk of its finances on a CEO's third Ferrari then you may be more inclined to invest elsewhere until that company figures out its priorities: productivity vs expensive golden parachutes.

Works well elsewhere where CEO pay is in the ~10x vs typical employee range, vs >100x down here. Leads to leaner run companies etc.
 
Tiberian said:
The world is changing and so is the landscape of employment and people - employees, I should say, are most likely getting a bit tired of being screwed over in the long run.
Life sucks these days for "the common people" and it's just getting worse.
Click to expand...

And what does "life sucks" have to do with what a small number of CEO's are getting paid?

Adjusting for inflation, I'm making about 40% less than what I was making 15 years ago.
The main reason has nothing to do with some CEO's pay, but with the economy and the government.

To many foreign working being brought in which is suppressing wages, but the government want to bring in more. Too many regulations and taxes, so companies move production to other countries, suppressing jobs even more, and making life more expensive for the working class.

The government solution to mandate $15/hour minimum wage is just going to make things worse, as even more jobs will be eliminated. How is a high school drop out flipping burgers worth over $30K/year?
I made way less than that in my first computer job, and that was with a college degree.
 
nutzo said:
So you are saying that some people with Bachelor and Master degrees are only making $8 an hour?

If so, they must really be unmotivated employees, or have degrees is something like under water basket weaving.

I only have an AA, yet I make more than the national average for people with Master degrees.
Click to expand...

Hook me up bud -- I have a Bachelors of Science in Economics from A&M -- and I'm unemployed! 33 years old, lifetime in IT and 5 years in oil and gas as an MWD Specialist.

You can guess why I'm unemployed now -- damn oil market bust.
 
I've lost count of how many "rah rah" meetings I've been to where our executive-whatever preaches to us how we did a great job last year, but we have to work just a little bit harder this year to make our inflated goal. The difference to me and 99% of the other employees amounts to $1-2k. The difference to the executives averages in the 6-7 figures. It doesn't matter. My coworkers gladly sacrifice their weekends and evenings for that little sliver.
 
It lets the public know if a CEO is firing workers to give himself/herself a raise.
 
Doesn't a listed company have to report it's Board members salary and stock options in the yearly financial report?

In the UK I get through the yearly financial reports for the companies I have stock in and they all list the earnings/share options for the CEO etc.
 
For public companies the salaries and compensation packages are already out there. For private companies this would be interesting information. Certainly isn't going to change anything except maybe more C-level executives bitching about how much another CEO or CFO is making. The gap will continue to widen between those at the top and those who are doing the real work.
 
GearChoices said:
Bachelor and Master degrees are not considered "an education" anymore? :confused:
Click to expand...

What percentage of people with bachelor and master degrees are working for $8an hour or even minimum wage?

If you mean PhD's and Law degrees...well, employers are hiring those even less.

Is an MD or equivalent medical doctor degree the only one considered "an education" now?

It's kind of hard for everyone in the country to be accepted into medical school, especially since medical schools artificially limit applicants (meaning they let in only a minority of those deemed capable of successfully completing the programs) in order to keep pay and employment rates high for graduates.[/QUOTE]

I have no clue what the rest of your post is about.
 
Smoeki said:
Why is it for only CEO's? I would love to know my co-workers pay, then I could go to my CEO and tell them for 50% of what you paid that loser of a coworker I can do his\her work that I'm already doing and you can fire them.

Seems a bit one sided in my view.
Click to expand...

This.

What someone in the same job or close to mine is what I care more about, as it relates to the work I do and what they think it is worth, as in the industrial field allot of the time raises do not come unless asked for, or maybe you get a new cert or license, then you will get one, so knowing what others in the field make helps with knowing how much to ask for and what they are willing to pay.

As for the CEO hate, there is only one of them at the company, and they are there for choices and making sure things are going in the right direction to make money, a poor performing normal worker has little impact on the overall company and profit, while a CEO can make or break it, even if he/she never gets off their ass to do anything it does not matter. Stop being butt hurt about these people living the dream and work/study your ass off and get a better paying job or become a CEO yourself if it is so easy. :rolleyes:

I work at a smaller company, and I know the CEO has his own jet, 6 different cars (not a single one is under 100k) etc etc, am I jealous? Hell yes. And just looking at him you would think, this dude does nothing but rake in money. Well once I got into a higher position I saw that was not the case. I don't think this dude ever gets to sleep, which explains why is is never in a good mood and is hard on people for performance. He keeps track of everything going on, flies all over and I have myself been up for almost 3 days straight trying to help him with a big project he was trying to land, once my part was done for another 3 days I still got calls at 1-3am from him with questions. I can only think of the kind of hours this guy puts in and the sort of stress he is under all the time. I had a chance to go back on my tools for a week (grunt work), and while back when I did that full time I made a good deal less, it was the most stress free and enjoyable time I have had at work in years, if I could make the same pay I am now and do just the physical work, it would be wonderful.
 
GearChoices said:
You can get student loans. But then good luck getting a job to pay them back (or any other bills) afterwards...
Click to expand...

Student loans have a myriad of payback options and most are based on current salary. If you're only making minimum wage or living on unemployment you can apply for a hardship deferral.

There are numerous programs for low income and minority applicants to get a variety of aid, many of which doesn't need to even be paid back if they wish to pursue a higher education.
 
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