Tuesday, April 18, 2006
If so, the Security and Exchanges Commission is trying to help. The SEC has proposed new rules that will require companies to disclose the pay of division heads and even top stars... The SEC proposal would require that companies disclose the pay packages of some top employees (only the pay of corporate officers is required to be disclosed now). Not surprisingly, the entertainment companies are against it. Variety has a summary, and Defamer has the down and dirty version. Both quote from Jeffrey Katzenberg's comments to the SEC: "It is inevitable that some employees will take issue with their respective rankings and create unnecessary and counterproductive strife with their fellow employees and the company." Now, I have an idea. If somebody is so underpaid that they won't be able to effectively do their job, maybe they deserve a raise. Conversely, if you've so overpaid somebody that the rest of your top people will freak out, then maybe that somebody needs an adjustment down. Personally, I'm all for transparency. If I'm going to buy the stocks of some of these companies (not to mention as someone working at these places), I'd like to have a little better idea about what's going on at the top.
Posted by Kevin Koch at 1:23 AM