The SEC could ditch a rule that reveals the pay gap between CEOs and workers - here's the data
Under acting head Michael Piwowar, the Securities and Exchange Commission has signaled a desire to reconsider Dodd-Frank rules. Specifically on the table is the requirement that corporations disclose the pay gap between their chief executive's compensation and that of median workers. This runs counter to what the American people want.
JUST Capital's research has shown that Americans - including active investors - are highly in favor of transparency from companies, especially on issues of pay, for both executives and the average worker. In fact,"pays workers fairly compared to the CEO" was called out explicitly as an important component of the JUST 100 Index.
At JUST, we assess company performance on all the things the public tell us they care about. On this particular issue, JUST analysts have estimated the CEO:Median US Worker Pay ratios for all companies in the Russell 1000. The average across all represented industries is 236.0 to 1.
Variability among industries is substantial, from Internet and Software (where the average pay ratio is roughly 118:1) to Consumer Services (almost 500:1).
Just Capital
However, within industries things get even more interesting. Take the Capital Goods sector for example. Here, Fastenal (FAST) has a ratio of just 48 to 1, whereas SolarCity Corporation (SCTY) comes in at a whopping 602:1 (Note: SolarCity was acquired by Tesla in November, 2016. Elon Musk is CEO of both companies). GE comes in second, at 518:1.
Just Capital
In the Banking sector, JP Morgan tops the charts at 635:1, with Zions Bancorporation at the low end with a ratio of just 60:1. To be fair to JP Morgan, it's worth noting that their wealthier investment banking brethren are included under the Capital Markets sector, and not Banking.
Just Capital
In addition, 87% of Americans would use information about justness when looking for a job, 84% would use it to inform purchasing decisions, and yes, 85% would use it to inform investing decisions.
Regardless of any decisions at the SEC, JUST Capital will continue to compile this data.
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market