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10 FAQs about CEO-to-worker pay gap disclosures

The anticipated disclosures will provide a first-ever glimpse into how thousands of U.S. companies compensate their workers, plus a more accurate sense than ever before of the CEO-to-worker pay gap.

By Anders Melin | Updated on January 19, 2018
Some companies and directors are worried about how the media will characterize their ratios. Others are more concerned with how employees will react. (Photo: Shutterstock)

U.S. companies must soon begin disclosing what many would rather keep secret: The ratio between the CEO’s compensation and the paycheck of the company’s median worker. The mandate was included in the 2010 Dodd-Frank Act to shed light on the growing income gap between executives and workers. Opponents say it’s only meant to embarrass executives and won’t be useful to investors. One critic called it an example of “bigotry against the successful.” 

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