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Here's Why CEOs Make So Much Money | International Breaking News 9 лет назад


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Here's Why CEOs Make So Much Money | International Breaking News

Here's Why CEOs Make So Much Money | International Breaking News ► More about IBN: https://goo.gl/1nCZ27 Since the 1970s, CEOs' salaries have continued to climb that on average they're 300 times higher than workers. So why are CEOs paid so much? On August 5, the U.S. Securities and Exchange Commission ruled that Chief Executives of publicly traded companies must make the ratio between their pay and the median pay of their workforce public information. In a 3-2 vote, with two Republican commissioners voting against it, the government agency passed the measure as part of the Dodd-Frank Wall Street Reform Act. While some critics say the measure caters too much to labor unions, SEC chairwoman stated it's simply in due process with the legislation passed. ""It is the law and we are required to carry it out." Enforcement of the CEO pay disclosure will begin in 2017. The rule comes amid a time when the disparity between executive pay and employee pay has never been greater. According to the Economy Policy Institute, in 1970, the ratio between CEOs and employees was 20 to 1. In the years since, that figure has grown drastically. According to CNN, CEOs now earn, on average, 300 times what their workers earn. Part of this has to do with how many of the top-earning executives get paid. Many of them take part of their salary from company stock and the company's board of directors ultimately determines what the CEO will take home. As a company's stock rises, a board may likely raise the executive salary to encourage more investing and drive the price up. Workers, on the other hand, do not see financial gains like this. In fact, largely due to the country's policy surrounding labor rights, wages for middle and lower class workers have barely kept up with inflation, according to The Atlantic. We've covered income inequality before and it's an issue worth keeping an eye on as the 2016 election roars into full force. ►International Breaking News International Breaking News is committed to answering the smart, inquisitive questions people have about life, society, politics and anything else happening in the news. It's a place where curiosity rules and together we'll get a clearer understanding of this crazy world we live in. Find us with all this keyword: "All About China, All about Iran, All about north korea, 2016 United States Presidential Candidates, Crime And Punishment, Political Ideologies Explained"

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