The SEC recently voted to require employers to disclose the pay gap between the CEO and his or her employees. Unions, investors, and other groups have increasingly been using this disparity to attack companies. As Fortune calmly pointed out:
The rule is well intentioned. CEO pay in 2014 was an eye-popping 373 times that of an average worker, according to data compiled by the AFL-CIO, and a sharp rise from 331 times in 2013. This imbalance contributes to America’s growing wealth gap and accompanying social and political inequities. Requiring companies, especially large public corporations, to disclose how richly their CEOs are paid would provide valuable information for shareholders and possibly help the larger national debate about economic fairness. WSJ the Big Flaw in the SEC’s Pay Ratio Rule.