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Four Reasons the SEC's New Ratio Test Will Not Decrease CEO Pay
The Huffington Post Link to more items from this source
[Opinion]
Oct. 22, 2013

"[1] This rule ... doesn't actually require companies to change anything about the compensation structure of their CEO and other executives.... All it requires is disclosure.... [2] The rule does not provide a specific methodology for companies to use in calculating a 'pay ratio' ... [3]  [The disclosures] will provide CEOs with lower 'pay ratios' an additional piece of evidence to use to argue that they are underpaid relative to their peers.... [4] Executing these calculations, running these ratios, and putting together these disclosure reports ... will cost money and it will be a cost that will most likely be passed along to shareholders."

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