A lack of transparency helps no one.
We can see that with our own Board of Supervisors or every presidential administration’s hidden agenda. Secrets don’t stay that way for long.
But there’s no risk of unflattering revelations if the facts are on public view in the first place, and this is what the Securities and Exchange Commision proposed and voted on last Wednesday.
Three of the five members think CEO-to-worker pay ratios should be public domain, while the two others wonder why it’s even under consideration.
I’m with the majority here. Publicizing salaries doesn’t seem like it would hurt too badly if there’s nothing to hide.
However, from a purely business standpoint, this provision makes no sense. It could skew investors’ views of a company to see beyond the numbers to imagine the people behind them, those who put in tough work and receive a fraction of a CEO’s income.
It could take away from the business’ professional demeanor to imagine the potential difference, and no potential investor wants to face those facts.
I don’t think businesses should be evaluated by a simple matter of the most profitable man winning.
Sure, that’s the way it works right now, with our somewhat free market economy and all, but the world would be a better place if that wasn’t true.
Maybe I’m a complete hippie, but I think these numbers are important for the public to know. While we already know most CEOs’ salaries, there isn’t much data out there with which to compare it, and this could be a valuable step in re-evaluating our system.
“The proposed rule-making will increase investors’ sensitivity to the impact of higher CEO pay levels on a company’s performance,” said Brandon Rees, acting head of the AFL-CIO’s Office of Investment according to the Wall Street Journal.
His view makes me believe a provision like this would prompt investors to place their money with more equal companies, and that would be a good move.
Those who don’t much care could ignore the numbers and continue investing based on a business’ monetary integrity instead.
Those who choose not to consider the information don’t have to.
It could influence future generations’ views on business for the better, and turn an ethical view into the norm.
Right now, we live in a pretty free-market nation, and questioning a business’ ethics is something only vegans and rich people have time to do and we don’t hold businesses accountable for the way they treat employees on a grand scale.
For the rest of the population, it’s not worth weeding through all the paperwork to find the numbers and information behind a storefront.
The SEC’s provision could make it simpler for a person with basic ethical values to evaluate a company before deciding to buy items or invest.
Sure, this isn’t an end to the problem or a catch-all collation, but it’s a way to spur people’s thoughts.
Some change is better than no change, and policy is a good way to start a domino effect with something as institutionalized as business.
If the SEC has decided something like the pay ratio measure needs to be put in place, then something needs to happen, and I’m glad the governmental body in charge of the U.S. market is spearheading this movement.
Megan Dunbar is a 19-year-old English junior from Greenville, S.C.