Will Salary Shaming Rein In CEO Pay? We’ll Find Out: QuickTake

We would like to share this article by the Washington Post with our readers, along with insight on the subject of salary shaming from one of L&A’s founders.

Here are 4 “predictions” from our company’s President, Chris Crawford, related to CEO Pay and this article:

  1. CEO Pay is not going to go down because a ratio of ceo pay to the median employee pay will be disclosed in 2 months. CEO pay is already disclosed. What could possibly occur in future legislative chambers is additional taxes for oversized ceo pay ratios. But that is probably a few election cycles away from now.
  2. What will change is the disclosure of the median employee’s total compensation in most public companies. This new disclosure will likely create some heated discussions at the company water cooler, as way more than 50% of the organization will believe they are under the median employee compensation. Most employees think about their after tax base salary as their compensation, not the gross total compensation including overtime, bonuses, long-term incentives, etc. which is the number that will be reported in the proxy statement.
  3. Retailers, restaurants, Fortune 200, manufacturing and multinational companies will not look too good. These companies will likely have the highest CEO to median employee pay ratio, and will incur the most scrutiny.
  4. Biotech, Engineering, Hi-tech and Energy Companies will have a new crop of recruits looking to go into the business. There will probably be plenty of median employee compensation comparisons by industry, and these industries will likely be on the high side. College students will take note.