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SEC to Require Disclosure of CEO-Worker Pay Inequality

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 (Win McNamee/Getty Images)

The Securities and Exchange Commission voted 3-2 Wednesday to require public companies to disclose the ratio of their chief executive officer’s pay to the median compensation of their employees. Supporters say the pay ratio rule, which came about as part of the 2010 Dodd-Frank financial regulation reforms, will discourage excessive CEO compensation. Detractors say the rule will be difficult to implement and have little impact on income inequality.

Guests:

Robert Reich, former U.S. labor secretary and professor of public policy at the Goldman School of Public Policy at UC Berkeley

David Larcker, professor in the Stanford Graduate School of Business

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