Pax Ellevate Petitions for Gender Pay Disclosures
An investment advisory firm has asked the Securities and Exchange Commission (“SEC”) to make public companies disclose the pay ratio between male and female employees. In its petition to the SEC, Pax Ellevate Management LLC said gender pay disclosures provide more value for investors and are a useful indicator of well-managed, honest companies. Pax Ellevate also argued that the gender pay ratio falls under the “materiality” definition in Staff Accounting Bulletin No. 99, Materiality, and that the SEC could offer guidance to companies on voluntarily reporting pay equity to investors.
The current gender wage gap shows that women earn $0.79 for every $1.00 paid to men. In addition, the Equal Employment Opportunity Commission lists 1,880 enforcement actions or lawsuits associated with gender wage gap. Pax Ellevate’s Sallie Krawcheck and Joseph Keefe, authors of the petition, also suggested companies that do a bad job of keeping and motivating their employees are often at a competitive disadvantage.