that public companies disclose internal pay equity details is a
top candidate for the next regulation to be challenged in court
on the grounds of cost-benefit analysis.
Ironically, emerging growth
companies temporary relief from the rule under the
Jumpstart Our Business Startups (Jobs) Act could help in this
Section 953(b) of Dodd-Frank
requires publicly listed companies to disclose the ratio of CEO
pay as a proportion of the median-paid employee at the company.
It is generally viewed as a reactionary provision and faced
opposition almost immediately.
The collection and
organisation of data is particularly burdensome for large and
global companies, and revealing the pay disparity between the
CEO and median employee is of questionable benefit to
shareholders. This makes it ripe for a courtchallenge on the
grounds of inadequate cost-benefit analysis.
There is a decent likelihood that, if a final...