The Securities and Exchange Commission is close to reviving a rule that requires companies to be transparent about how much more CEOs make than their rank-and-file, The Wall Street Journal reported on Thursday.
The SEC's move was tucked within the framework of the 2010 Dodd-Frank financial reform bill, which continues to attract controversy because of its provisions. The rule is expected to be approved by the SEC as early as September, sources tell the WSJ, but is expected to be less cumbersome than what lawmakers originally envisioned.
The regulatory body is expected to allow companies to consider a fraction of their employees when calculating median pay, the newspaper reported. Companies would have to disclose the ratio between CEO compensation and the median pay of the sampled employee group, it added.
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Do you think it'd be nice to know how much a CEO makes compared with the typical amount made by an employee of his or her company? Well, you're going to find out. Soon.
This past week the chairman of the Securities and Exchange Commission told a congressional committee that the agency is finally ready to put into effect a law passed by Congress three years ago.
"I hope that it is completed in the next month or two," Mary Jo White said at a Senate Banking Committee hearing on Tuesday, according to The Hill. "We are very much as a staff and commission focused on that rule-making."
Publicly traded companies will have to calculate how much all their employees get paid, figure out the median, then compare it to the CEO's pay package.
For more than a year and a half Apple has been the ticker lookup champ. Before that, Citigroup—owing to its widely held status—was the usual winner. But in 2010 Apple started appearing at the top of the ticker list, usually on its earnings days and MacWorld events. Then, in 2011, it started regularly seesawing with Citigroup.
There was a really important development this week about a key interest rate that influences all sorts of loans and financial securities around the world. The event pointed up 3 things …
—Honor systems don't work, at least with banks
—The solution to replace the honor system in this case may not work either
—The general public tends to ignore complicated things, so there's little shame
Do you like your job? There's been some conflicted views about it lately.
You see, Gallup recently came out with its "State of the American Workplace" report saying that only 30 percent of workers were engaged and satisfied with their jobs. More than half were feeling so-so and 18 percent were downright discontented.
But then we at CNBC just came out with our All-America survey showing that about 85 percent of Americans are pretty satisfied with their jobs.
Does it matter if you admit guilt if you're paying the fine? Maybe it's a matter of how big the fine is.
Right now it's the admitting guilt part being put to the test at the Securities and Exchange Commission.
You see, historically when that agency catches a company doing something wrong … be it bending some numbers or fibbing to investors … it tends to force them into a settlement agreement. The company pays a fine but doesn't have to admit wrongdoing.
We do a lot of cursing in the newsroom. So we were a little taken aback by the news from Scotts Miracle-Gro.
The company's board reprimanded its CEO for salty language. That's something you don't see every day. Any manager knows a well-placed F-bomb can do wonders. And in newsrooms, it's de rigueur (much to the chagrin of many an HR manager I've met).
And generally CEOs say whatever the … heck … they want, right? (Related: CEO Outbursts)
In fact, it's part of being a CEO.
We love face-offs at CNBC. And it looks like we have one today…over bonds.
Two major brokerages are taking opposite sides over whether or not a long awaited sell off in the bond market is here.
"The bond sell-off: It's for real," Goldman Sach's fixed income analysts said in a research note released on Friday, pointing to a recent uptick in Treasury yields.
As people drift into the CNBC lobby in the morning, they grab bundles of newspapers from the front desk. It's a routine.
Almost universally Wednesday morning when people saw the front page of USA Today, with its banner headline "Bull run gets solid footing," heads shook and there were mutters of "it's a top."
That's an outgrowth of the contrary indicator thinking that once mainstream media picks up on a market trend, be it bull, bear, pig or whatever, the trend is over.
Most point to a 1979 Businessweek article titled "The Death of Equities" as the origin. That article, of course, came before a two-decade bull market in stocks.
In USA Today's defense, the article was well-sourced and pointed out the latest economic fundamentals. (Hey, USA Today is a content partner of ours ... of course they're good!)