Pay-ratio disclosure changed negotiation more than it changed pay
The measurable effect has been on internal bargaining, not on headline compensation.
Governance DeskPublished 3 days ago
The theory behind ratio disclosure was that public visibility would restrain the top of the distribution. Several years of data suggest it has done something different.
Headline executive compensation has been largely unmoved. Wage negotiation below the executive layer, however, now routinely references the published figure — and settles higher where the ratio is extreme.
Whether that constitutes success depends on what one thought the policy was for.
Drafted with AI assistance and reviewed by the Leaders & Impact editorial desk. Sourcing and factual assertion remain human-owned.