New Research Debunks a Common Criticism of Pay Transparency

New Research Debunks a Common Criticism of Pay Transparency

In the debate over whether it’s helpful or hurtful to share employee pay data, consider a new finding: When the SEC mandated CEO‐to‐median‐employee pay disclosures, the information didn’t erode morale—instead it raised average pay satisfaction by giving workers a realistic reference point for their own earnings. Before the SEC rule, employees relied on gossip, social media signals, and incomplete online salary data, often overestimating peers’ p…