U.s. Securities And Exchange Commission

1660 Words Dec 15th, 2015 7 Pages
In today’s world, debates over wages and compensation have been a growing topic of concern. Many people feel that they are entitled to earn more than they currently are. The comparison of executive wages and worker wages has created a backlash from the American public due to the extreme differences in pay. The U.S. Securities and Exchange Commission adopted the mandate by the Dodd-Frank Wall Street Reform and Consumer Protection Act that requires public companies to release their chief executive officers pay in relationship to the median compensation of its employees (U.S. Securities and Exchange Commission). Although this regulation does not take effect until the 2017 fiscal year, many companies have previously made this data free information. The public consensus of this data has been that the pay of some companies CEO’s is excessive. The response from the organizations has been that “the objective of the salary element is to reflect the extent of experience and the sustained level of performance for the job” (Walters, Hardin and Schick 228), which means that the higher-up a person is on the organizational latter, the more he or she gets rewarded. However, in the case of high executive pay, the ends do not justify the means. The current ratio of chief executive officer compensation to their worker’s pay rate is detrimental to the organization as a whole due to its effect on the many factors that attribute to the success of the company overall.
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