Corporations, in general, don’t enjoy sharing how much their CEOs make.
Probably because the numbers are borderline embarrassing, to be honest.
reported, a study from the Economic Policy Institute found American CEOs have benefitted from staggering pay raises over the past few decades. The rest of the country? Not so much.
CEOs at top U.S. firms made about 303 times more than what their average worker made in 2014. That figure the CEO-to-worker compensation ratio has shifted dramatically since 1965, when top CEOs made just 20 times more.
What a difference 50 years makes, huh? Take a look:
Big businesses rarely disclose this information voluntarily. But now, many will have to.
On Aug. 5, 2015, the Securities and Exchange Commission voted 3 to 2 in favor of a rule that, starting in 2017, will require most public companies to regularly disclose their CEO-to-worker compensation ratio.
The rule was actually part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which passed in response to the Great Recession. But after years of resistance from companies hesitant to comply, it’s (finally) becoming a reality.
And that’s a good thing.
Consider it a big win in the fight against income inequality.
While the ruling does nothing to limit CEO pay, it does make CEO pay more transparent. That’s an important factor in closing the ever-growing gap between America’s haves and have-nots.
Income inequality: Presidential candidates are making it a core issue of their platforms. Cities like Seattle and counties like Los Angeles are fighting it with hikes in their minimum wage laws. Fast food workers in some places yeah, I see you New York have had enough of it, demanding their paychecks match the work they put in.