I think it’s a positive move that the Securities and Exchange Commission has approved a rule that would require most public companies to regularly reveal the ratio of the chief executive’s pay to that of the average employee.
Why not s/v? (2 graphs)
from David Ruccio
The ratio does give an indication of how members of the 1 percent have pulled away from everyone else, including their employees. Presumably, revealing that ratio might help keep CEO pay in check.
But underlying the increase in CEO pay is the fact that corporate profits have also been growing at the expense of workers’ pay. The increase in profits has made it possible for CEOs to capture a large share of those profits.
As we can see above, the ratio of corporate profits to workers’ pay has risen dramatically in recent decades, from 0.157 in 1982 to 0.324 in 2013.
Why not then make a rule that corporations (or the nation’s statisticians) need to reveal their rate of exploitation, s/v?
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