1. CEO Pay Ratio Rule Is ‘Disclosure by Soundbite’

    CEO Pay Ratio Rule Is ‘Disclosure by Soundbite’

    Unlike every other SEC-required disclosure, the CEO pay ratio may be reported absent any context whatsoever. All that’s required is the ratio itself, such as “300:1.” “It’s very bizarre,” Georgiev tells CFO . That’s particularly so, he points out, for a couple of reasons...

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    1. The firms would report widely different pay ratios, which would obscure internal pay equity rather than illuminate it.
    2. We took care to say about five times in the paper that pay ratios are not supposed to be compared — but why have numbers if you're not going to compare them?
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