Don’t Stop Readying Your Pay Ratio Just Yet

Companies collecting data and crunching numbers on the pay gap between their workers and their chief executive officer shouldn’t stop just yet.

Republicans in Congress have tried for years to undo a requirement from the 2010 Dodd-Frank Act for public companies to disclose the ratio of CEO-to-worker pay, through legislative packages, standalone bills and riders to government spending measures. With control of both chambers and the White House next year, their legislation will have an easier time getting through.

House Financial Services Committee Chairman Jeb Hensarling’s bill (H.R. 5983) to scrap Dodd-Frank would repeal the pay ratio requirements. The bill may serve as a blueprint in the next Congress as to how Republicans would remove the requirements. Read More