Say on pay: Is your company's CEO worth it?

CEOs of American companies are gearing up to disclose if they're worth what they are being paid

On August 25, the US Securities and Exchange Commission (SEC) adopted new rules, implementing the much delayed “measures of pay versus company performance” disclosures.

These final rules require public companies to disclose executive compensation alongside their financial performance and compare the pay with that of a tightly defined set of peers. All this together with a commentary on how the compensation paid to its senior executives relate to the company’s financial performance. These measures are expected to cover a five-year period — with three years for smaller companies.

True, most US public companies already include pay-for-performance disclosures in information statements.