Reed: CEO Pay Ratio Disclosure Can Help Address the Wage Gap

Press Release

Today, U.S. Senator Jack Reed (D-RI) backed a final rule adopted by the Securities and Exchange Commission (SEC) that will require a publicly traded company to disclose the pay gap between its chief executive officer (CEO) and rank-and-file employees. The rule, adopted at the urging of Senator Reed and others, shines a light on the dramatic and growing income disparities in the United States between CEOs and the workers they employ.

"While CEOs can create value for companies, so do workers. Now those workers and shareholders will have a much better sense of how companies compensate and value their rank-and-file employees. When companies succeed, there should be growth at both ends of the pay scale. This new rule is long overdue, but I am glad the SEC is finally moving forward with the law. Increasing transparency and making publicly traded companies more forthcoming about pay ratios is a commonsense step toward addressing growing income inequality," said Senator Reed, a senior member of the Banking Committee.

Source