Cato’s Knight: SEC Rule on CEO Pay Disclosure Is Rubbish

Image: Cato

Image: Cato’s Knight: SEC Rule on CEO Pay Disclosure Is Rubbish Thaya Knight, associate director of financial-regulation studies at the Cato Institute, isn’t exactly jumping for joy over the Securities and Exchange Commission’s approval of a rule last week to make public companies disclose the ratio of CEO pay to that of the company’s median employee.

The rule, of course, stems from growing public concern about income inequality. According to the Economic Policy Institute, CEOs’ pay totaled almost 300 times that of their employees in 2013, up from 20 in 1963.

"It is difficult to think of another SEC rule with […]