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Why Obsess Over CEO Pay? Well, Why Wouldn’t We?

Matt Kelly | August 3, 2015

While we all wait breathlessly for the Securities and Exchange Commission to release its final CEO pay ratio disclosure rule this week, let’s also take a moment to consider the ethical subtext to this very difficult compliance issue.

To wit: CEO pay is still too large for most people’s liking, and income inequality is too. Until companies learn how to solve those challenges internally, as a governance matter, expect them to be solved externally, as a compliance matter. It’s that simple.

Solving them as a governance matter is not easy, a fact made painfully clear in a New York Times article this weekend that profiled a company...

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