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Disclosure of the CEO Pay Ratio: Potential Impact on Stakeholders
McCarter & English LLP, via Harvard Law School Forum on Corporate Governance and Financial Regulation Oct. 18, 2018
"Investors may have a different point of view after several years of seeing disclosures of the CEO Pay Ratio and the Median Employee Pay and changes in each of these.... Many employees will be upset to learn, as part of the CEO Pay Ratio disclosure, that their pay levels are below the Median Employee Pay level at their employer ... An important effect of the pay and pay ratio disclosures ... may be an upward pressure on employee pay levels."
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