A New Landmark in CEO-Worker Pay Ratio Disclosure

Sarah Anderson Institute for Policy Studies

Honeywell has become the first large U.S. corporation to report the ratio between its CEO and median worker compensation, in compliance with a new Securities and Exchange Commision regulationbased on the 2010 Dodd-Frank financial reform legislation.

Honeywell, a Fortune 100 company that concentrates on manufacturing technologies, included the pay ratio information in a preliminary proxy statement posted on the SEC web site after 5 p.m. on Friday, February 16.

Two particularly noteworthy revelations stand out in the Honeywell disclosure.

The first: Honeywell CEO Darius Adamczyk, with only nine months of experience in his chief executive job, made 333 times as much in 2017 as the median Honeywell worker.

Adamczyk replaced long-time Honeywell CEO David Cote in April 2017. To calculate the CEO-worker pay ratio, Honeywell annualized Adamczyk’s compensation, coming up with a total of $16.5 million. The median worker pay at the firm: $50,296.

The second: The Honeywell pay ratio disclosure reveals previously unreleased information about the extent of the company’s offshoring of jobs. Honeywell revealed this information because the SEC pay ratio rule allows companies to exclude some of their foreign-based workers from the calculation of median worker pay. But companies that go this route must make additional disclosures.

Posted In: Allied Approaches

Union Matters

On Resignation of Gary Cohn

By Lori Wallach
Director of Public Citizen’s Global Trade Watch

It is very telling that for Cohn, a Democrat, the final straw in leaving was not Trump’s horrifying response to the Charlottesville white supremacist uber-hate fest or endless attacks on Mexicans and Muslim, but a steel trade enforcement action involving tariffs that would be 5 percent lower than the steel trade action enacted by Pres. George W. Bush in 2002.

That Cohn is a Democrat did not stop him from joining the Trump administration, but that his departure would be spurred over a trade policy dispute reveals that his years on Wall Street at Goldman Sachs apparently made his one unbending principle the defense of the corporate-managed trade policies that have outsourced millions of middle class jobs and pushed down Americans wages.  


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