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Wednesday, February 26, 2020

A CEO Challenge 

This is a challenge to CEOs in general and those who are clearly overpaid.  Activists are targeting these executives, their boards and their companies.  The SEC-mandated rule that the pay ratio between top and bottom workers be published annually has served to spotlight the discrepancy in remuneration.  The problem is chronic.  CEOs don't want to give up the money and boards don't want to rock the boat.  That leaves the shareholders to act, if they can.  Look for pressure to increase as the years pass and for pay to become a PR problem.  It already is in corporations that aren't performing well and it will be in every business sooner or later.

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