U.S. companies to disclose CEO to worker pay ratio

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Thursday, September 19, 2013

Reuters: U.S. companies will have to disclose how CEOs' paychecks compare to their average workers' under a new proposal by the Securities and Exchange Commission.

With CEOs of many U.S. companies earning hundreds of times more than their workers, unions and labor advocates are championing the SEC's CEO pay-ratio rule. They say disclosures would help investors identify top-heavy compensation models.

But business groups such as the U.S. Chamber of Commerce and the Center on Executive Compensation oppose the measure, calling the data costly to compile and of little use to investors.

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