Wage Distribution

Guest: David Sims, Ph.D., Associate Professor of Economics at BYU  The Securities and Exchange Commission recently completed a rule that will require some 3,800 public companies to start disclosing just how much more money their CEOs are taking home than rank-and-file employees. Companies fought this “pay ratio” rule for several years, fearing the extra work it might make for their HR departments – but more importantly, the uncomfortable conversations it might force. The average CEO today makes nearly 300 times what a company’s average employee makes, according to analysis by the Economic Policy Institute.