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CEO Pay 1,795-to-1 Multiple of Wages Skirts U.S. Law
Key Excerpts from Article on Website of Bloomberg News
Posted: May 7th, 2013
http://www.bloomberg.com/news/2013-04-30/ceo-pay-1-795-to-1-...
Former fashion jewelry saleswoman Rebecca Gonzales and former Chief Executive Officer Ron Johnson have one thing in common: J.C. Penney Co. no longer employs either. The similarity ends there. Johnson, 54, got a compensation package worth 1,795 times the average wage and benefits of a U.S. department store worker when he was hired in November 2011, according to data compiled by Bloomberg. Gonzaless hourly wage was $8.30 that year. Across the [S&P] 500 Index of companies, the average multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009, the data show. 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 hasnt yet drawn up the rules to implement it. Some of Americas biggest companies are lobbying against the requirement. Its a simple piece of information stockholders ought to have, said Phil Angelides, who led the Financial Crisis Inquiry Commission, which investigated the economic collapse of 2008. The fact that corporate executives wouldnt want to display the number speaks volumes. The lobbying is part of a street-by-street, block-by-block fight waged by large corporations and their Wall Street colleagues to obstruct the Dodd-Frank law, he said.
Note: For deeply revealing reports from reliable major media sources on income inequality, click here .
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