CEO Pay Ratio Disclosures and Changes in Employee Pay Satisfaction

References

• Adams JS (1963) Wage inequities, productivity and work quality. Indust. Relations J. Econom. Soc. 3(1):9–16.Crossref, Google Scholar
• Adhikari BK (2016) Causal effect of analyst following on corporate social responsibility. J. Corporate Finance 41:201–216.Crossref, Google Scholar
• Akerlof GA, Yellen JL (1990) The fair wage-effort hypothesis and unemployment. Quart. J. Econom. 105(2):255–283.Crossref, Google Scholar
• Alterman V, Bamberger PA, Wang M, Koopmann J, Belogolovsky E, Shi J (2021) Best not to know: Pay secrecy, employee voluntary turnover, and the conditioning effect of distributive justice. Acad. Management J. 64(2):482–508.Crossref, Google Scholar
• Baker AC, Larcker DF, Wang CCY (2022) How much should we trust staggered difference-in-differences estimates? J. Financial Econom. 144(2):370–395.Crossref, Google Scholar
• Bamberger P, Belogolovsky E (2010) The impact of pay secrecy on individual task performance. Personnel Psych. 63(4):965–996.Crossref, Google Scholar
• Barnes S (2024) Discrimination announcements, employee opinion, and capital structure: Evidence from the EEOC. Financial Rev. 59(3):745–777.Google Scholar
• Barrios JM (2022) Staggeringly problematic: A primer on staggered did for accounting researchers. Preprint, submitted December 7, https://doi.org/10.2139/ssrn.3794859.Google Scholar
• Belogolovsky E, Bamberger PA (2014) Signaling in secret: Pay for performance and the incentive and sorting effects of pay secrecy. Acad. Management J. 57(6):1706–1733.Crossref, Google Scholar
• Bonsall SB IV, Green J, Muller KA III (2020) Market uncertainty and the importance of media coverage at earnings announcements. J. Accounting Econom. 69(1):101264.Crossref, Google Scholar
• Boone A, Starkweather A, White JT (2024) The saliency of the CEO pay ratio. Rev. Finance 28(3):1059–1104.Crossref, Google Scholar
• Breza E, Kaur S, Shamdasani Y (2018) The morale effects of pay inequality. Quart. J. Econom. 133(2):611–663.Crossref, Google Scholar
• Brown M, Nyberg AJ, Weller I, Strizver SD (2022) Pay information disclosure: Review and recommendations for research spanning the pay secrecy–pay transparency continuum. J. Management 48(6):1661–1694.Crossref, Google Scholar
• Bushee BJ, Core JE, Guay W, Hamm SJW (2010) The role of the business press as an information intermediary. J. Accounting Res. 48(1):1–19.Crossref, Google Scholar
• Card D, Mas A, Moretti E, Saez E (2012) Inequality at work: The effect of peer salaries on job satisfaction. Amer. Econom. Rev. 102(6):2981–3003.Crossref, Google Scholar
• Cengiz D, Dube A, Lindner A, Zipperer B (2019) The effect of minimum wages on low-wage jobs. Quart. J. Econom. 134(3):1405–1454.Crossref, Google Scholar
• Chakravarthy J, deHaan E, Rajgopal S (2014) Reputation repair after a serious restatement. Accounting Rev. 89(4):1329–1363.Crossref, Google Scholar
• Chang W, Dambra M, Schonberger B, Suk I (2023) Does sensationalism affect executive compensation? Evidence from pay ratio disclosure reform. J. Accounting Res. 61(1):187–242.Crossref, Google Scholar
• Chen T, Dong H, Lin C (2020) Institutional shareholders and corporate social responsibility. J. Financial Econom. 135(2):483–504.Crossref, Google Scholar
• Choi BG, Choi JH, Malik S (2023) Not just for investors: The role of earnings announcements in guiding job seekers. J. Accounting Econom. 76(1):101588.Google Scholar
• Cohn JB, Liu Z, Wardlaw MI (2022) Count (and count-like) data in finance. J. Financial Econom. 146(2):529–551.Crossref, Google Scholar
• Colella A, Paetzold RL, Zardkoohi A, Wesson MJ (2007) Exposing pay secrecy. Acad. Management Rev. 32(1):55–71.Crossref, Google Scholar
• Crawford SS, Nelson KK, Rountree BR (2021) Mind the gap: CEO–employee pay ratios and shareholder say-on-pay votes. J. Bus. Finance Accounting 48(1–2):308–337.Crossref, Google Scholar
• Cullen Z (2023) Is pay transparency good? Technical report, National Bureau of Economic Research, Cambridge, MA.Crossref, Google Scholar
• Cullen Z, Perez-Truglia R (2022) How much does your boss make? The effects of salary comparisons. J. Political Econom. 130(3):766–822.Crossref, Google Scholar
• deHaan E, Li N, Zhou FS (2023) Financial reporting and employee job search. J. Accounting Res. 61(2):571–617.Crossref, Google Scholar
• Downes PE, Choi D (2014) Employee reactions to pay dispersion: A typology of existing research. Human Resource Management Rev. 24(1):53–66.Google Scholar
• Engel M (2017) Pay ratio disclosure: A practical guide to implementation. Cap Partners. Accessed December 29, 2022, https://www.capartners.com/cap-thinking/2017-pay-ratio-disclosure-practical-guide-implementation/.Google Scholar
• Fang VW, Tian X, Tice S (2014) Does stock liquidity enhance or impede firm innovation? J. Finance 69(5):2085–2125.Crossref, Google Scholar
• Fowlie M, Greenstone M, Wolfram C (2018) Do energy efficiency investments deliver? Evidence from the weatherization assistance program. Quart. J. Econom. 133(3):1597–1644.Crossref, Google Scholar
• Golshan N, Khurana IK, Silva FBG (2023) Financial transparency, labor productivity, and real wages: Evidence from mandatory IFRS adoption. J. Internat. Accounting Res. 22(3):31–61.Google Scholar
• Gong P, Thomas JK (2023) Thumb on the scale: Do employers manage Glassdoor reviews? Preprint, submitted May 31, https://doi.org/10.2139/ssrn.4460625.Google Scholar
• Grabner I, Martin MA (2021) The effect of horizontal pay dispersion on the effectiveness of performance-based incentives. Accounting Organ. Soc. 88:101174.Crossref, Google Scholar
• Grasser RA, Newman AH, Xiong XG (2024) The effect of horizontal pay transparency on employee motivation when pay dispersion is performance based and non-performance based. J. Management Accounting Res. 36(2):99–122.Crossref, Google Scholar
• Green TC, Markov S, Zhou D (2024) Pay inequality and job satisfaction: Evidence from Glassdoor. Preprint, submitted August 1, https://doi.org/10.2139/ssrn.3415937.Google Scholar
• Green TC, Huang R, Wen Q, Zhou D (2019) Crowdsourced employer reviews and stock returns. J. Financial Econom. 134(1):236–251.Crossref, Google Scholar
• Hales J, Moon JR Jr, Swenson LA (2018) A new era of voluntary disclosure? Empirical evidence on how employee postings on social media relate to future corporate disclosures. Accounting Organ. Soc. 68:88–108.Crossref, Google Scholar
• Hembree D (2018) CEO pay skyrockets to 361 times that of the average worker. Forbes Online (May 22), https://www.forbes.com/sites/dianahembree/2018/05/22/ceo-pay-skyrockets-to-361-times-that-of-the-average-worker/?sh=7d89e1c776dd.Google Scholar
• Herren Lee A (2020) Diversity matters, disclosure works, and the SEC can do more: Remarks at the Council of Institutional Investors fall 2020 conference. U.S. Securities and Exchange Commission. Accessed June 1, 2022, https://www.sec.gov/news/speech/lee-cii-2020-conference-20200922.Google Scholar
• Herren Lee A, Crenshaw C (2021) Statement on Nasdaq’s diversity proposals—A positive first step for investors. U.S. Securities and Exchange Commission. Accessed June 1, 2022, https://www.sec.gov/news/public-statement/statement-nasdaq-diversity-080621.Google Scholar
• Huang K, Li M, Markov S (2020) What do employees know? Evidence from a social media platform. Accounting Rev. 95(2):199–226.Crossref, Google Scholar
• Huang M, Li P, Meschke F, Guthrie JP (2015) Family firms, employee satisfaction, and corporate performance. J. Corporate Finance 34:108–127.Crossref, Google Scholar
• Ising E, Mueller R, Hanvey K, Kroll J, Marshall H (2016) Executive compensation disclosure handbook. Donnelley. Accessed June 14, 2022, https://www.gibsondunn.com/wp-content/uploads/documents/publications/Ising-Mueller-Hanvey-Executive-Compensation-Disclosure-Handbook-Donnelley-Financial-Solutions-Oct-2016.pdf.Google Scholar
• Jennings R, LaViers L, Rouen E, Sandvik J (2024) The effects of human capital disclosures on professional investors’ assessments of firm risk. Preprint, submitted June 19, http://dx.doi.org/10.2139/ssrn.5065997.Google Scholar
• Kelly K, Seow JL (2016) Investor reactions to company disclosure of high CEO pay and high CEO-to-employee pay ratio: An experimental investigation. J. Management Accounting Res. 28(1):107–125.Crossref, Google Scholar
• Kohler J, Seelig S (2017) The do’s and don’ts of CEO pay ratio communications. Accessed June 1, 2022, https://www.wtwco.com/en-CA/Insights/2017/09/The-Dos-and-Donts-of-CEO-Pay-Ratio-Communications.Google Scholar
• Kohler J, Seelig S, Luss R (2017) Employee reaction to CEO pay ratio disclosure. Harvard Law School Forum on Corporate Governance and Financial Regulation. Accessed June 1, 2022, https://corpgov.law.harvard.edu/2017/11/16/employee-reaction-to-ceo-pay-ratio-disclosure/.Google Scholar
• LaViers L (2024) How proposed SEC disclosure requirements could help workers. Harvard Business Review. Accessed March 21, 2025, https://hbr.org/2024/10/how-proposed-sec-disclosure-requirements-could-help-workers.Google Scholar
• LaViers L, Sandvik J, Xu D (2024) CEO pay ratio voluntary disclosures and stakeholder reactions. Rev. Accounting Stud. 29(1):109–150.Crossref, Google Scholar
• Lazear EP, Rosen S (1981) Rank-order tournaments as optimum labor contracts. J. Political Econom. 89(5):841–864.Crossref, Google Scholar
• Leone AJ, Minutti-Meza M, Wasley CE (2019) Influential observations and inference in accounting research. Accounting Rev. 94(6):337–364.Crossref, Google Scholar
• Leventhal GS (1980) What Should Be Done with Equity Theory? Social Exchange (Springer, New York), 27–55.Google Scholar
• Lifshey D, Podstupka S (2017) The CEO pay ratio rule: Navigating the process and answering the questions. Pearl Meyer. Accessed December 29, 2022, https://www.pearlmeyer.com/knowledge-share/article/the-ceo-pay-ratio-rule-navigating-the-process-and-answering-the-questions.Google Scholar
• Liu T, Makridis CA, Ouimet P, Simintzi E (2023) The distribution of nonwage benefits: Maternity benefits and gender diversity. Rev. Financial Stud. 36(1):194–234.Crossref, Google Scholar
• Maurer M (2024) Companies required to disclose spending on pay. The Wall Street Journal (June 28), B11.Google Scholar
• McGregor J (2018) As companies reveal gigantic CEO-to-worker pay ratios, some worry how low-paid workers might take the news. The Washington Post Online (February 21), https://www.washingtonpost.com/news/on-leadership/wp/2018/02/21/as-companies-reveal-gigantic-ceo-to-worker-pay-ratios-some-worry-how-low-paid-workers-might-take-the-news/.Google Scholar
• Melián-González S, Bulchand-Gidumal J, González López-Valcárcel B (2015) New evidence of the relationship between employee satisfaction and firm economic performance. Personnel Rev. 44(6):906–929.Crossref, Google Scholar
• Mkrtchyan A, Sandvik J, Xu D (2024) Employee responses to CEO activism. J. Accounting Econom. 78(1):101701.Google Scholar
• Oswald AJ, Proto E, Sgroi D (2015) Happiness and productivity. J. Labor Econom. 33(4):789–822.Crossref, Google Scholar
• Pan Y, Pikulina ES, Siegel S, Wang TY (2022) Do equity markets care about income inequality? Evidence from pay ratio disclosure. J. Finance 77(2):1371–1411.Crossref, Google Scholar
• Picchi A (2018) At this company, the CEO makes 6,000 times a typical worker’s pay. Accessed February 11, 2022, https://www.cbsnews.com/news/at-this-company-the-ceo-make-6000-times-a-typical-workers-pay/.Google Scholar
• Rouen E (2020) Rethinking measurement of pay disparity and its relation to firm performance. Accounting Rev. 95(1):343–378.Crossref, Google Scholar
• Sandvik J, Saouma R, Seegert N, Stanton C (2021) Employee responses to compensation changes: Evidence from a sales firm. Management Sci. 67(12):7687–7707.Link, Google Scholar
• Securities and Exchange Commission (2015) Pay ratio disclosure. Accessed June 1, 2020, https://www.sec.gov/rules/final/2015/33-9877.pdf.Google Scholar
• Securities and Exchange Commission (2023) Investor advisory committee. Recommendation of the SEC Investor Advisory Committee’s Investor-as-Owner Subcommittee regarding Human Capital Management Disclosure. Accessed October 31, 2025, https://www.sec.gov/files/spotlight/iac/20230921-recommendation-regarding-hcm.pdf.Google Scholar
• Sheng J (2025) Asset pricing in the information age: Employee expectations and stock returns. Rev. Asset Pricing Stud. 15(1):74–101. Google Scholar
• SimanTov-Nachlieli I, Bamberger P (2021) Pay communication, justice, and affect: The asymmetric effects of process and outcome pay transparency on counterproductive workplace behavior. J. Appl. Psych. 106(2):230–249.Crossref, Google Scholar
• Teoh SH (2018) The promise and challenges of new datasets for accounting research. Accounting Organ. Soc. 68:109–117.Crossref, Google Scholar
• Tuttle B (2018) This CEO makes 900 times more than his typical employee. Money Online (March 12), https://money.com/ceo-pay-worker-ratio/.Google Scholar
• Weaver A (2018) How does your company’s pay measure up? Weaver. Accessed January 4, 2023, https://weaver.com/blog/how-does-your-companys-pay-measure.Google Scholar
• Willis Towers Watson (2017) Employee reaction is U.S. employers’ biggest challenge to pay ratio disclosure rule. Willis Towers Watson Public Limited Company. Accessed July 11, 2024, https://www.globenewswire.com/en/news-release/2017/10/05/1141453/0/en/Employee-reaction-is-U-S-employers-biggest-challenge-to-pay-ratio-disclosure-rule.html/.Google Scholar
• Zhao J (2018) What to tell employees when you disclose the CEO pay ratio. Accessed June 1, 2022, https://www.payscale.com/compensation-trends/ceo-pay-ratio-disclosure/.Google Scholar