The Wall Street Journal reports today that CEO pay rose 5.5 percent last year to an average of $11.4 million, while the average worker gained 1.8 percent. The median wage didnt budge, remaining stuck under $28,000. The biggest single reason CEO pay is so high is it’s tied to profits. After-tax profits for American companies hit a record high last year, reaching $1.68 trillion. Corporations are now making more as a percentage of the economy than they have since records have been kept. Why the record profits? Largely because of payroll cuts. Get it? The ratio between the pay of CEOs and workers keeps widening because CEOs are getting rich by slicing worker pay. Requiring major companies to disclose these ratios wont reverse the trend but would at least alert investors and consumers to the most egregious performers. The Dodd-Frank law requires this disclosure but the Securities and Exchange Commission is dragging its feet. Please call Shelley Parratt, Deputy Director of the SEC’s Disclosure Operations, at 202-551-3130, and say you want those ratios disclosed, pronto.
Posted on: Wed, 28 May 2014 16:43:17 +0000
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