Pay transparency and the pay dispersion it reveals matter to academics, policymakers, and corporate stakeholders. We study how the increased pay transparency brought about by the United States’ CEO pay ratio disclosure rule affected employee pay satisfaction. Economic models of pay...

Since 2018, the Security and Exchange Commission (SEC) requires firms to disclose the ratio of their Chief Executive Officer's (CEO's) and median employee's pay. Due to the uncertainty surrounding the ratio's interpretation, managers must weigh the costs and benefits of including (or omitting)...