Home > Uncategorized > This is why your CEO makes more than 300 times your pay

This is why your CEO makes more than 300 times your pay

Fortune

This week I got called a bully.

What provoked the name-calling was a Securities and Exchange Commission vote on Wednesday to adopt regulations requiring corporations to disclose the gap between what they pay their CEO and their workers. The commissioners voted 3 to 2 along straight party lines.

In a dissenting statement, SEC Republican Commissioner Michael Piwowar said his colleagues were “acquiescing to bullies.”

If supporting CEO-worker pay ratio disclosure makes you a bully, then count me among them. For many years, I’ve argued that extreme inequality within firms, with big company CEOs making hundreds of times more than shop floor employees, is not just grossly unfair. It’s also bad for business.

A Stanford University review of several studies, for instance, found that highly differentiated pay between top and bottom earners tends to reduce employee morale and job satisfaction. A CtW Investment Group analysis of S&P 500 companies…

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