October 30, 2013
Dear Securities and Exchange Commission:
I am an investor in publicly traded companies through my retirement plan and personal savings.
I 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.
This is also an issue for consumers. Because I may not invest in a particular stock or mutual fund. I do buy goods and services from many different companies. I would like to be able to choose those that treat employee pay equitiably.
At the moment I do not know if I am being asked to pay a double burden as a stockholder, getting poorer returns and equity on my investment, and as a consumer paying a higher price. I NEED TO KNOW.
Sincerely,
Wayne Lundeen
Wayne Lundeen
St. Paul, MN