Wage ratio: Difference between revisions
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The United Kingdom: An organization by the name of Pay Compare is compiling a list of companies which choose to self-report their pay multiple.<ref>http://www.paycompare.org.uk</ref> |
The United Kingdom: An organization by the name of Pay Compare is compiling a list of companies which choose to self-report their pay multiple.<ref>http://www.paycompare.org.uk</ref> |
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The United States: [http://wageratio.tk/ The Wage Ratio Organization] is [https://www.causes.com/campaigns/77701-tell-the-us-government-to-pass-wage-ratio-legislation currently campaigning to create legislation] limiting the income of the highest-earner in a company to (50+.0003*size of company workforce) times the income of the lowest-paid worker in the same company. |
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Spain: The Spanish Socialist Workers Party, the official Spanish opposition party, is adopting a ratio as part of their official policy.<ref>http://www.businessinsider.com/switzerland-to-vote-on-executive-pay-law-sunday-2013-11</ref> |
Spain: The Spanish Socialist Workers Party, the official Spanish opposition party, is adopting a ratio as part of their official policy.<ref>http://www.businessinsider.com/switzerland-to-vote-on-executive-pay-law-sunday-2013-11</ref> |
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Revision as of 02:46, 21 June 2014
In economics, the wage ratio refers to the ratio of the top salaries in a group (company, city, country, etc.) to the bottom salaries. It is a measure of wage dispersion.
History
Present
There has been a resurgence for the importance of equitable wage ratio. The amount of money paid out to executives has steadily been on the rise. "An April 2013 study by Bloomberg finds that large public company CEOs were paid an average of 204 times the compensation of rank-and-file workers in their industries. By comparison, it is estimated that the average CEO was paid about 20 times the typical worker’s pay in the 1950s, with that multiple rising to 42-to-1 in 1980, and to 120-to-1 in 2000".[1] While not as extreme, similar trends have been observed around the world.
With the wage ratio steadily climbing, there has been a push to have increase transparency in publicizing the ratio for many of the worlds largest companies. In 2010 President Barack Obama signed into effect the Dodd–Frank Wall Street Reform and Consumer Protection Act. In short, Section 953(b) of the Dodd-Frank Act changed the regulation regarding CEO compensation disclosure to shareholders.[2]
In addition to the move of the Securities and Exchange Commission, there have been a number of movement around to the world to attempt to regulate the pay ratio of executives.
Switzerland - 1:12 Initiative: Swiss referendum on September 24, 2013 in an attempt to create legislation limiting the amount of executive to just 12 times that of the lowest paid workers.
Canada: The Wagemark Foundation, a Toronto-based mont-for-profit organization is working to create an international wage standard certifying organizations that can prove they operate with a wage ratio of 8:1 or better.
The United Kingdom: An organization by the name of Pay Compare is compiling a list of companies which choose to self-report their pay multiple.[3]
The United States: The Wage Ratio Organization is currently campaigning to create legislation limiting the income of the highest-earner in a company to (50+.0003*size of company workforce) times the income of the lowest-paid worker in the same company.
Spain: The Spanish Socialist Workers Party, the official Spanish opposition party, is adopting a ratio as part of their official policy.[4]
References
- ^ Aguilar, Louis A. "SEC Open Meeting". Retrieved 6 December 2013.
- ^ http://www.sec.gov/News/Speech/Detail/Speech/1370539813937#.UqD9NxbFnww
- ^ http://www.paycompare.org.uk
- ^ http://www.businessinsider.com/switzerland-to-vote-on-executive-pay-law-sunday-2013-11