Lawyers: New CEO Pay Disclosure Rule a 'Logistical Nightmare'

A new rule forcing U.S. companies to disclose the ratio between their chief executive's pay and that of the typical employee is a "logistical nightmare"", lawyers say.

"It's just not do-able for a large company with tens of thousands of employees worldwide," Richard Susko, a partner at Cleary Gottlieb told The Financial Times.

The median pay package for S&P 500 CEOs was $7.5 million in 2009, according to pay research firm Equilar. The average pay in the private sector was just over $40,000.

Businesses are preparing to lobby the SEC, which has to write detailed provisions for the new rule.

The office of Senator Robert Mendez (D., N.J.), who proposed the rule, dismissed the criticism.

"The idea behind the new rule is that sunlight is the best disinfectant," an aide told the FT. "Disclosure will help encourage fair pay for workers at a time when middle class pay has stagnated while CEO pay has skyrocketed."

Increase your money and finance knowledge from home

Economics 101

Intro to economics. But fun.

View Course »

Introduction to Retirement Funds

Target date funds help you maintain a long term portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:

It's not a logistical nightmare, the CEO's don't want to disclose how much money they are receiving. There was a time in this country when it was disclosed annually at a stock holder's meeting the pay of the CEO, CFO and Bd of Directors, however, alot of voting rights have been taken away from the stockholder. So, why isn't the public investing -- our stock values have tanked, our voting rights have been taken away for the most part by it's a board decision. And our investment in a company is just another way for the big fat CEO's to get their grubby greedy hands on our money. case in Point, ESOP (just show me the money from now on) AT&T, ENRON, BEAR STEARNS, BEthlehem STEEL etc, all these companies gave their hard-working employees stock in lieu of cash and then the stock becaume worthless.

August 31 2010 at 8:49 AM Report abuse +1 rate up rate down Reply