Columnist David Nicklaus writes in the St. Louis Post-Dispatch on Aug. 7 about the new rule requiring companies to publish the ratio of their chief executive’s pay to the wages earned by a median worker. The Securities and Exchange Commission gives companies until 2018 to comply.
Radhakrishnan Gopalan, associate professor of finance at Olin tells Nicklaus, “I find it very difficult to benchmark this number against anything. I don’t think there was a clamor from institutional shareholders and other investors for this.” The rule was outlined in the Dodd-Frank reform act of 2010.
