09/19/2013 11:51 am ET Updated Sep 19, 2013

Why It's A Good Thing The SEC Is Doing Something About CEO Pay

CEO pay has gotten so out of whack in recent years that regulators are taking notice.

The Securities and Exchange Commission released a proposed rule Wednesday that would require companies to reveal the ratio between CEO and worker pay. Supporters of the proposal, which is part of the Dodd-Frank reform law, say it would help give shareholders a better sense of which companies are paying their CEOs too much. But business groups say the rule would be too much of a burden on companies, requiring them to collect expensive data that doesn't really matter much to investors anyway.

Regardless, the pay gap between CEOs and rank and file workers is stark. The CEO-to-average worker pay gap soared from 195:1 in 1993 to 354:1 in 2012, according to the Institute for Policy Studies. These companies have the largest gaps between CEO pay and median worker pay, according to PayScale.

CEO's Who Get Paid Significantly Higher Than Employees

Note: PayScale's report is based on Forbes' 2012 CEO Compensation data and includes cash-only compensation, not including equity or benefits.



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