SEC adopts rules mandating disclosure of CEO-worker pay ratios
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Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#2I'm not really sure what this is going to accomplish.
CEO pay is already public. And this is going to end up on page 37 of a companies 68 page annual report.
And then there is this....
> Under the Securities and Exchange Commission's final rules, companies will get some flexibility in how they find the median. For instance, they can exclude 5 percent of their overseas workers when arriving at the number and use statistical sampling.
Companies can also use sampling to estimate median pay and they only have to recalculate this once every three years.
It looks like a company can cherry pick who they deem to be workers and what they consider pay.
This just seems like Elizabeth Warren trying to make political gains.
Or put another way. Apple releases earnings and we find that Tim Cook has one of the largest wage gaps due to him being paid in stock that is soaring in price and AAPL having so many apple store employees that bring down their median pay.
Are people going to suddenly stop investing in AAPL or demand change because of this? Will anyone notice at all?
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#3I'm not really sure what this is going to accomplish. CEO pay is already public. And this is going to end up on page 37 of a companies 68 page annual report. And then there is this.... > Under the Securities and Exchange Commission's final rules, companies will get some flexibility in how they find the median. For instance, they can exclude 5 percent of their overseas workers when arriving at the number and use stati…
They should just make those Apple Store employees into contractors
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#4Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it.
My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#5I am not sure what the big deal is with this. I vaguely understand why regulators want this to be public knowledge. I have no understanding of why effort is being spent in opposing this.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#6I'm not really sure what this is going to accomplish. CEO pay is already public. And this is going to end up on page 37 of a companies 68 page annual report. And then there is this.... > Under the Securities and Exchange Commission's final rules, companies will get some flexibility in how they find the median. For instance, they can exclude 5 percent of their overseas workers when arriving at the number and use stati…
They should just make those Apple Store employees into contractors
Even easier than that. Spin off Apple Store LLC with APPL as the sole member.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#7I have thought once I establish a company, I might tie CEO salary to be limited to being a multiple of the least paid employee. Then what the good ratio is becomes an interesting question to me. Is 10x enough? Is 100x too much? Is a CEO's productivity worth 100x the lowest paid employee?
If we go with the lowest paid employee is making 30k a year, and the CEO is making 3mil? Is that too much, not enough, just right?
There isn't a right answer and it entirely depends on the purpose of the company and the model, but I do think it's an interesting way to keep a reality check on inequality voluntarily inside a company.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#8Can someone explain to me why we're outraged that CEOs make lots of money? I truly don't understand it. My presumption is that CEOs are adding enough value to be worth their pay, just like every other worker (should be).
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Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#9I have thought once I establish a company, I might tie CEO salary to be limited to being a multiple of the least paid employee. Then what the good ratio is becomes an interesting question to me. Is 10x enough? Is 100x too much? Is a CEO's productivity worth 100x the lowest paid employee? If we go with the lowest paid employee is making 30k a year, and the CEO is making 3mil? Is that too much, not enough, just right?…
> Is a CEO's productivity worth 100x the lowest paid employee?
No. Not if you want to live in a peaceful society, but we're talking religions again... You are correct, there is no right answer. Views vary based on how much 'socialist' or 'liberal' someone is.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#10I am not sure what the big deal is with this. I vaguely understand why regulators want this to be public knowledge. I have no understanding of why effort is being spent in opposing this.
Because keeping the proles in the dark about how hard they're being screwed benefits the people doing the screwing?