Wednesday, May 18, 2016
The AFL-CIO unions are engaged in a smart PR move. They are tracing the wage pay gap between CEOs and average workers and making it public. There is no better way to highlight inequity than making it transparent. This does not mean CEOs will forgo pay raises in years to come but it increases pressure on them and their boards to show performance for the pay CEOs are getting. It also protects the average worker from wage reductions that would increase the pay gap between the bottom and the top. There is a new SEC rule that requires the proxy to show the gap between CEOs' pay and average workers. This plus the unions' study should continue to highlight pay inequity and begin the glacial movement to reducing the gap between the bottom and the top.