The SEC’s new rule requiring companies to disclose the ratio of CEO pay to that of the median employee unleashed a flood of praise and criticism. The New York Times highlights some reasons it might reduce outsized executive pay. The Atlantic points to an alternative: Lynn Stout’s recommendation that limiting corporations’ ability to deduct executive pay from their taxes would have a far larger impact. Yale Insights talked with Stout about executive compensation and the role of shareholder value in setting direction in corporations.
In Global Network Perspectives, Clemens Otto of HEC Paris reports that optimistic CEOs get paid less than their pessimistic peers.