Companies unconcerned about proposal requiring them to report how much CEOs make in relation to their workers | cleveland.com

Companies unconcerned about proposal requiring them to report how much CEOs make in relation to their workers | cleveland.com:

""This pay data is important to investors because it shines a light on the company pay ladder for all employees, not just the pay of top executives that is already disclosed under current rules," said AFL-CIO President Richard Trumka in a release a few days after the SEC passed the proposal. "The simple fact is that large pay disparities between CEOs and their employees affect a company's performance.

"Disclosure of CEO-to-worker pay ratios will give investors an important metric to analyze the compensation practices of companies," he said.

Trumka said out-of-line CEO compensation impacts productivity as well as employee morale and loyalty.

"In contrast, reasonable CEO-to-worker pay ratios send a positive message to the workforce that the contributions of all employees are important to running a successful company," he said.

The ratio of CEO-to-worker pay in 2012 was 354:1, according to the AFL-CIO. The labor organization said that in 1982, the ratio was 42:1."