Companies Will Now Be Forced To Disclose Their CEO-Median Employee Pay Gap, And That’s Good For You

The Securities and Exchange Commission has handed down a new law under which numerous public companies to disclose the ratio between the salary of their CEO and that of their median employee, and this is welcome news. While some have criticized the rule, arguing it provides information that is not particularly valuable to the average employee, we disagree.

As Forbes points out, the rule does necessitate the disclosure of the median employee’s salary, which is useful information for an employee seeking to understand their company’s payscale for the purpose of negotiating compensation. Every step toward transparency is a positive one for employees, and we hope this trend continues!