Federal regulators establish rule mandating publicly-owned companies to reveal the ratio between executives’ compensation and employees’ median wage.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Federal regulators established a rule Wednesday mandating publicly-owned companies to reveal the ratio between executives’ compensation and employees’ median wage.
The issue of executive pay has generated heated debate. The 3-2 vote by the Securities and Exchange Commission came on one of the most controversial rules the agency has put forward in recent years.
The regulators acted under a mandate from the 2010 law that reshaped regulation after the financial crisis. Outsize pay packages — often tied to the company’s stock price —were blamed for encouraging disastrous risk-taking and short-term gain at the expense of long-term performance.
(SOURCE: Associated Press)
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