July 2, 2012
I urge you to promptly issue a rule requiring public companies to disclose their ratio of CEO-to-worker compensation, as required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This pay ratio disclosure requirement will help boards of directors and investors evaluate the overall level of CEO compensation relative to other company employees.
The ratio of CEO-to-worker pay is material information for investors for many reasons. Academic studies show that large pay disparities within a company can hurt employee teamwork, productivity, loyalty and motivation. The impact of high levels of CEO pay on employee morale is particularly important in today's weak economy, when workers are being asked to do more for less.
THESE EXCESSIVE SALARIES EXEMPLIFY WHAT HAS GONE WRONG WITH AMERICA. PAY TO EXECUTIVES AND CEOs SHOULD NOT BE HUNDREDS OF TIMES WHAT ORDINARY WORKERS MAKE. THIS IS WHY AMERICANS DON'T HAVE MONEY FOR BASIC LIVING. THIS IS WHY THE U.S. ECONOMY IS CRUMBLING. THIS INJUSTICE MUST BE REVEALED.
Sincerely,
Sarah Reid