SEC wants publicly traded firms to share pay information

In response to public outcry over the staggering disparity between some executives’ pay compared to what they are paying their employees, the U.S. Securities and Exchange Commission proposed rules that would require publicly traded companies to disclose the differences between what executives get and what employees are paid, according to a report in the New York Times.
 
Three of the five SEC members voted for the proposal, which is part of Dodd-Frank legislation requiring the SEC to amend current rules on pay disclosure.
 
Supporters of the new rules say the move will lead to more transparency, increase available investor information and might persuade boards to rethink how much they pay their executives. Critics say the rules are too complicated, costly and time-consuming, even though the SEC said companies can choose their own methods for calculating the pay ratios.

Read more at the New York Times.