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SEC Proposes CEO Pay Ratio Rule

iStock_Pay measurement

September 18, 2013

Companies will have to show how CEO compensation compares to that of average workers under a pay ratio proposal from the Securities and Exchange Commission. The proposed rule, embodying part of the 2010 Dodd-Frank Law, has been resisted by companies, with critics arguing that gathering and analyzing the data will take time and money but be of little help to shareholders. Unions and public interest advocates support the measure in light of record-high wage gaps between U.S. executives and average employees.

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