The SEC is dragging its feet implementing a section of the Dodd-Frank reform that would require publicly traded companies to calculate the ratio between the CEO’s pay and that of the firm’s median pay package. The New York Times editorial board urges them to push forward.
Corporate lobbyists say it’s too complicated to figure out the math. They figured out how to create uber-complex financial products that untangled the global economy, but aren’t able to divide the CEO’s earnings (they must know) by the median employee pay?
Of course, the real reason they oppose the law is that they don’t want to add fire to the public debate about excessive CEO salaries – certainly while the rest of America struggles to pay bills, put kids through college and afford mortgage payments. Obscurity, not transparency, benefits the privileged.
Their opposition to useful information for investors and consumers is a replay of earlier legislative battles.