(AP) Federal regulators have moved toward requiring public companies to bring to light the difference in pay between their CEOs and ordinary employees.
The Securities and Exchange Commission voted 3-2 Wednesday to propose a rule that would compel companies to report that information publicly. Companies would have to report the ratio between their chief executive's annual compensation and the median, or midpoint, pay of employees.
Business interests vigorously oppose the requirement.
The SEC opened the proposal to public comment for 60 days; it could be formally adopted sometime after that.
The move was called for by the 2010 financial overhaul law. Executive compensation is a hot-button issue with the public and in Congress, and it took on greater urgency during the financial crisis that began in the fall of 2008.