SEC Approves Final CEO Pay-Ratio Rule
The Securities and Exchange Commission approved a new rule that would require companies to disclose pay gaps between employees and executive managers, by releasing median pay figures in comparison to CEO compensation. The rule had been proposed by activist investors hoping to force companies to address income inequality and how a company treats human capital. Opponents to the rule have argued that requiring companies to disclose such information promotes political ideology rather than providing shareholders relevant business information.
See "SEC Approves Final CEO Pay-Ratio Rule", Victoria McGrane and Joann S. Lublin, August 5, 2015