CEO pay ratio disclosure mandate - helpful transparency or pointless shaming?

I was digging through the SEC filings for a local chain last night and saw their CEO makes 287 times the median worker pay. On one hand that feels gross but on the other hand the company has grown revenue 40% in 3 years under them. Do y'all think these salary ratios push business owners to pay better or do they just make headlines?

2 comments

2 Comments

josephl671d ago

Hold up, I'm gonna disagree a bit here. Just because revenue went up doesn't mean the CEO's pay is fair or that the ratio is useless. That 40% growth could be from the workers on the floor, not just the person at the top. I've seen companies do great while still paying their CEO a crazy amount, but it also shows they could share the gains instead of hoarding them. The ratio is a spotlight on how a company values its people versus its boss, and it forces us to ask if that 287x gap is really needed to keep the business running. Isn't the real measure if the median worker can actually afford to live near the store they work at?

hayden_butler271d ago

My local grocery store's ratio jumped 50 percent in two years and nobody batted an eye.