Here's Why The New CEO Pay Rule Could Backfire On Its Advocates

When the Securities and Exchange Commission released its CEO pay rule this week, many cheered it as a way to shame companies into moderating outlandish pay packages. --The rule, which goes into effect in 2017, mandates that publicly-traded companies disclose the gap between what their top executives are paid and what their rank and file workers make. --As the New York Times' Gretchen Morgenson put it, "because the rule will generate an easily graspable and often decidedly shocking number, it may energize a cadre of new combatants in the executive pay fight." It could have the opposite effect.

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(Hat tip: KimR)