Requesting The University Of Hawaii Economic Research Organization To Conduct A Study Of The Ceo-to-worker Pay Ratio In The State.
The study aims to measure the ratio of CEO pay to the pay of typical workers across various industries in Hawaii. Additionally, the resolution seeks to assess the economic implications of these disparities on the state and explore potential legislative remedies to narrow this pay ratio. This inquiry is particularly relevant considering local discussions about the significant increases in executive compensation observed during economic downturns, highlighting issues of equity and fairness in the labor market.
Senate Resolution 112 (SR112) seeks to address the growing disparity between CEO compensation and typical worker wages in Hawaii. The resolution requests the University of Hawaii Economic Research Organization (UHERO) to conduct a comprehensive study on the CEO-to-worker pay ratio in the State. This initiative stems from concerns that the gap between these pay levels has escalated significantly over the years, with CEO pay increasing by over 1,200% since 1978 while typical workers have experienced only a 15.3% increase during the same period.
Notably, the resolution references legislative efforts at the federal level, such as the Curtailing Executive Overcompensation Act and the Tax Excessive CEO Pay Act, which aim to address similar issues of pay equity. In addition to assessing existing pay ratios, the bill proposes exploring various methods to restrain CEO pay, including the reevaluation of tax incentives and regulatory frameworks that might exacerbate wage inequality. This approach has drawn both support for its progressive agenda and criticism regarding its feasibility and potential impact on corporations operating within the state.