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.
