On Wednesday, the Securities and Exchange Commission will finally give an indication of how it may implement a controversial Dodd-Frank Act requirement for companies to disclose the median annual total compensation of all employees as a ratio to the median annual total compensation of the company’s chief executive officer.
Proponents of the measure say it is a simple enough way to keep tabs on runaway executive compensation that contributed to the financial crisis. Business leaders, however, counter that the complexities of executive pay packages, and the nature of their global workforce, make such a calculation difficult and expensive.
