November 22, 2013
Dear Securities and Exchange Commission:
My husband and I are investors in publicly traded companies through our retirement plan and personal savings.
We strongly support the SEC’s proposal requiring companies to disclose the CEO-to-median worker pay ratio, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Pay ratio disclosure will help investors evaluate CEO pay levels when voting on executive compensation matters. The ratio of the CEO-to-worker pay is a valuable metric for investors, because it places CEO pay levels into a broader perspective.
For example, investors may use pay ratios as a factor when casting say-on-pay votes. Pay ratio disclosure also will help investors better understand their company’s overall compensation for all employees.
High CEO-to-worker pay ratios can have a negative impact on employee morale and productivity. Disclosure of the pay ratios will help the capital markets better allocate capital to those companies that invest in their workforces.
We urge you to adopt this rule as transparency is the best way to ensure shareholders' rights to be able to make an informed vote. Additionally, a bit of light and fresh air may waken those who rake in obscene profits they don't truly need to the desperate situation of so many of the very workers who actually created the wealth that they enjoy. After all, we're all humans and citizens. Unfortunately, though, some have been living in the clouds for so long they seem like distant gods. Let's bring them gently down to earth!
Sincerely,
Liz Mitchell
Columbia, MO