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Record #: O2013-7620   
Type: Ordinance Status: Failed to Pass
Intro date: 10/16/2013 Current Controlling Legislative Body: Committee on Finance
Final action: 5/20/2015
Title: Amendment of Municipal Code Chapter 2-154 by adding new Section 018 entitled "Executive Compensation Disclosure Ordinance"
Sponsors: Burke, Edward M., Burns, William D.
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 154 Disclosure of Ownership Interest in Entities
Attachments: 1. O2013-7620.pdf
Related files: R2015-407
Committee on Finance

ORDINANCE

WHEREAS, the City of Chicago is a home rule unit of government pursuant to the 1970 Illinois Constitution, Article VII, Section 6 (a); and

WHEREAS, pursuant to its home rule power, the City of Chicago may exercise any power and perform any function relating to its government and affairs including the power to regulate for the protection of the public health, safety, morals, and welfare; and

WHEREAS, the gap in pay between chief executives and rank-and-file employees has been growing steadily; and

WHEREAS, across the Standard & Poor's 500 Index of companies, the average multiple of chief executive officer compensation to that of rank-and-file workers is 204, up 20 percent since 2009, and up 1,000 percent since 1950, according to data compiled by Bloomberg; and

WHEREAS, a similar analysis conducted by the AFL-CIO calculated the ratio of chief executive to other worker pay at companies in the S&P 500 to be 354-1; and

WHEREAS, executive pay is now more than 277 times an average worker's pay, compared with just 20 times in 1965, according to the Economic Policy Institute; and

WHEREAS, on September 18, 2013, the U.S. Securities and Exchange Commission voted to propose a new rule that would require public companies to disclose the difference between the pay of chief executives and their employees; and

WHEREAS, the corporate authorities of the City of Chicago intend to require the full and accurate public disclosure of executive compensation pay ratios of corporations seeking city action and intend to encourage such corporations to adhere to reasonable compensation policies; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:

SECTION 1. The above recitals are expressly incorporated herein and made part hereof as though fully set forth herein.

SECTION 2. Chapter 2-154 of the Municipal Code of the City of Chicago is hereby amended by inserting a new Section 2-154-018, as follows:

2-154-018 Executive compen...

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