James Cotton, a retired International Business Machines Corp. lawyer, wrote a 1997 article in the Northern Illinois Law Review arguing public U.S. firms should disclose the ratio of their chief executives’ pay to their workers. In 2010, the rule was included in the Dodd-Frank Act, but hasn’t been implemented by the Securities and Exchange Commission. Here is a direct link.
All good, except that three years later the SEC has yet to implement a disclosure rule:
“Almost three years after Congress ordered public companies to reveal actual CEO-to-worker pay ratios under the Dodd-Frank law, the numbers remain unknown. As the Occupy Wall Street movement and 2012 election made income inequality a social flashpoint, mandatory disclosure of the ratios remained bottled up at the Securities and Exchange Commission, which hasn’t yet drawn up the rules to implement it. Some of America’s biggest companies are lobbying against the requirement.”
See a full report at: CEO pay 1795 to 1 multiple skirts US law.
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