SEC Will Unveil CEO Pay Ratio Rule

Business & Money

U.S. corporations will have to disclose how their CEO’s pay compares to that of their average worker under a proposal to be unveiled Wednesday by the SEC, Reuters reports.

Unions and labor advocates say the disclosures will help investors decide whether a company’s compensation model is too top-heavy for their liking. But many companies and business organizations vehemently oppose the measure. The U.S. Chamber of Commerce and the Center on Executive Compensation say it is too costly to compile the data, which ultimately will not be useful to investors. They are urging the SEC to allow companies with offices across the globe to weigh pay data only for U.S.-based employees.

The proposal is one of two regulations mandated by the 2010 Dodd-Frank Wall Street reform law but not yet implemented that the SEC will move on today. The SEC is also expected to adopt a reform that will allow it…

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