Seems like the most worthless piece of data you could gather about a company.
SEC adopts rules mandating disclosure of CEO-worker pay ratios
21–30 of 86 posts
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#22Can 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).
Because someone told us we should be outraged at income inequality.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#23Can 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).
Because the level of CEO pay compared to average employee pay is at all time highs. It's gone from 20x the average employee in 1965 to 295x in 2013. Do you think CEOs are 10x more effective than they were in the 60s?
http://www.epi.org/publication/ceo-pay-continues-to-rise/
And yes, you can easily counter saying that private companies are allowed to pay their CEOs whatever they want, which is absolutely true, but at the same time many people are growing concerned about a wealth gap in the US - that the rich are getting subtantially richer, while the middle class haven't seen meaningful gains in a long time. That absolutely has an impact on society as a whole.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#24Can 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).
This is not always the case (some CEOs don't understand the company they're on-boarding with). However I'm never outraged by it, if a company wants to provide a massive salary, have a massive failure, then send off the CEO with a golden parachute more power to them.
However I may want to re-evaluate my future relationships with a company who is not very careful with their large investments.
As for the rules, it seems to be somewhere between class-warfare and fairness. Not sure we really need to know, but it might be useful information for some investors. It doesn't affect me so I have a hard time forming a strong opinion on this.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#25Can 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).
Who decides that and is it true or fair? If the CEO earns 25x the average employee salary would it be clear that they add 25x more value to the company than any other employee?
The owners of the company? i.e. Shareholders. It's not anyone else's business. Workers are free to renegotiate their contract, resign, buy shares, or start their own company. Who else other than the owners should decide?
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#26What on earth does this have to do with the SEC's charge of fighting fraud any other illegalities?
A massive discrepancy between the highest paid and lowest paid individuals in an organization may point to: money laundering, embezzlement, kickbacks, fraud, abuse, negligence, etc.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#27Can 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).
Honestly CEO's getting paid a ton isn't really much of a problem as opposed to the US's absurdly low income tax rates for the wealthy. Not to mention capital gains... estate taxes... etc
> US's absurdly low income tax rates for the wealthy
The top 20% of earners pay over 80% of the income taxes. That's low?
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#28From the WSJ:
CEO Pay vs. Performance
Executive compensation is increasingly geared toward results, but some CEOs still got big paydays even when their investors didn’t do so well.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#29Earlier quoted context omitted.
Honestly CEO's getting paid a ton isn't really much of a problem as opposed to the US's absurdly low income tax rates for the wealthy. Not to mention capital gains... estate taxes... etc
> US's absurdly low income tax rates for the wealthy The top 20% of earners pay over 80% of the income taxes. That's low?
As long as there are rich people there will be folks complaining that the rich don't pay enough taxes.
Re: SEC adopts rules mandating disclosure of CEO-worker pay ratios
#30First, here is the link to the actual release: http://www.sec.gov/News/PressRelease/Detail/PressRelease/137...
Because this was unclear to me initially, this DOES factor in complete CEO compensation (not just salary).
The interesting part is companies will now be required to disclose the mean salary of it's general employees (C-level salaries are already disclosed), it would be interesting to see Google, or any qualifying tech business, give an official statement on employee compensation amounts.
The part I find confusing, it includes seasonal and temporary workers. Target is expected to release the ratio of the CEO compared to the yearly compensation of the thousands of Holiday season workers it hires for 3 months?
Identification of Employees Covered by the Proposed Rule
“All employees of the registrant” would include:
1. All employees (including full-time, part-time, temporary, seasonal and non-U.S. employees)
2. Those employed by the company or any of its subsidiaries.
3. Those employed as of the last day of the company’s prior fiscal year.