(Source: International Brotherhood of Teamsters press release, August 5, 2015)
WASHINGTON, D.C. — In a victory for corporate disclosure, the Securities and Exchange Commission (SEC) today completed the CEO pay ratio rule required under the five-year-old Dodd-Frank financial law. The provision will require for the first time that companies reveal the pay gap between top executives and rank-and-file workers.
Companies for years have fought the SEC’s implementation of the rule. But today, the agency rightfully implemented language that largely sides with the intent spelled out under Dodd-Frank. The Teamsters applaud the SEC efforts and say it will shine sunlight on the workings of corporations across the country.
“At a time when corporate profits are near an all-time high and income inequality is growing, employees and shareholders have a right to know whether companies are padding the wallets of executives at the cost of workers and the company’s bottom line,” said Teamsters Secretary-Treasurer Ken Hall. “It’s time we learn from the past failings that helped cause the Great Recession.”
Under the new rule, companies will have to disclose median worker pay and compare it to CEO compensation. According to an AFL-CIO study of CEO pay at S&P 500 companies, the average CEO earned 373 times more than the typical U.S. worker in 2014. In contrast, CEOs in 1980 made 42 times more than the average employee.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.