US companies face a "logistical nightmare" from a new rule forcing them to disclose the ratio between their chief executive's pay package and that of the typical employee, lawyers have warned. The mandatory disclosure will provide ammunition for activists seeking to target perceived examples of excessive pay and perks. The law taps into public anger at the increasing disparity between the faltering incomes of middle America and the largely recession-proof multimillion-dollar remuneration of the typical corporate chief.S&P 500 chief executives last year received median pay packages of $7.5m, according to executive compensation research firm Equilar. By comparison, official statistics show the average private sector employee was paid just over $40,000. Business sees the disclosure provision - buried in section 953(b) of the Dodd-Frank financial reform act - as a bureaucratic headache that may encourage false comparisons.
The mandatory disclosure will provide ammunition for activists seeking to target perceived examples of excessive pay and perks. The law taps into public anger at the increasing disparity between the faltering incomes of middle America and the largely recession-proof multimillion-dollar remuneration of the typical corporate chief.
S&P 500 chief executives last year received median pay packages of $7.5m, according to executive compensation research firm Equilar. By comparison, official statistics show the average private sector employee was paid just over $40,000.
Business sees the disclosure provision - buried in section 953(b) of the Dodd-Frank financial reform act - as a bureaucratic headache that may encourage false comparisons.
US companies face a "logistical nightmare" from a new rule forcing them to disclose the ratio between their chief executive's pay package and that of the typical employee
Oh my word. We can make fantasticalistically complex software to model markets and manage asset trading, but working out pay differentials is going to be a nightmare.
Melanchthon:
The mandatory disclosure will provide ammunition for activists seeking to target perceived examples of excessive pay and perks.
Oh, activists, oh, right. Better keep everything under wraps than let those people "perceive" what's going on.
[The latter point does not apply to increased policing and security measures for the general population, of course, because if you've got nothing to hide, you've got nothing to fear, have you?]
