High CEO-Employee Pay Gap Ratio Is Bad Business

New research finds that when lopsided pay ratios between C-suite and worker compensation make the news, sales drop as consumers are “significantly less likely to buy from companies with high CEO pay ratios,” reports the Wall Street Journal. These ratios will be making big news this year, following a mandate by the SEC that now requires public U.S. companies to disclose how much their chief executive officers are paid in comparison to the median pay of their company’s employees. That average ratio has climbed to more than 300 to 1 from 30 to 1 over the past 40 years. Researchers predict a hit to the bottom lines of companies with large corporate pay ratio gaps while “companies with low ratios could take this opportunity to trumpet that fact to consumers” and potentially increase sales and profits.

John Howell, Editorial Director

Company News

Jun 15, 2011 1:06 PM ET

(3BL Media / theCSRfeed) Hyde Park, NY - June 15, 2011 - Sodexo, the leader in Quality of Daily Life Solutions, has pledged a gift of $150,000 toward scholarships at...

read more
Jun 15, 2011 12:30 PM ET

By Cynthia Figge   

Sustainable Brands 2011 convened leading brand, innovation and sustainability executives in Monterey for the fifth annual...

read more
Jun 15, 2011 12:18 PM ET

Supply chain organizations and professional consulting firms have traditionally focused their procurement efforts on efficiency and actions to reduce costs. While these practices provide some insight into spend control, the inability to...

read more
Jun 15, 2011 10:55 AM ET

(3BL Media / theCSRfeed) June 15, 2011 - This is the 12th annual nonfinancial report of Ford Motor Company. Ford's vision for sustainability reporting is that it is the basis of organizational learning. It demonstrates Ford's values,...

read more
Jun 15, 2011 10:30 AM ET

(3BL Media / theCSRfeed) Washington, D.C. - June 15, 2011 - The U.S. Chamber of Commerce Business Civic Leadership Center announces expert speakers for the...

read more
Jun 15, 2011 10:00 AM ET

(3BL Media / theCSRfeed) June 15, 2011 - The field of employment that applies to custodial maintenance, janitorial services, or environmental health services has long been without a certified training program.  Now that GREEN has come...

read more
Jun 15, 2011 9:39 AM ET

Symrise has defined its CSR goals through 2020. The company will focus on programs in four areas of sustainability: environment, employees, society, and business practices. Concrete goals...

read more
Jun 15, 2011 9:20 AM ET

(3BL Media / theCSRfeed) June 15, 2011 - Findings from the 2011 Deloitte Volunteer IMPACT Survey suggest that the benefits of creating a culture of service extend well beyond the personal experience of active volunteers.


read more
Jun 15, 2011 9:00 AM ET

(3BL Media / theCSRfeed) June 15, 2011 - The registration deadline for The Natural Step Canada's NEW advanced Sustainability for...

read more
Jun 15, 2011 8:45 AM ET

(3BL Media / theCSRfeed) NEW YORK, June 15, 2011 – Today across the country, more than 3,000 L’Oréal USA employees will roll up their sleeves to help those in need in their local communities by participating in the company’s annual...

read more