As US stock investors contemplate the biggest long-term risks facing the market, such as a global economic slowdown, trade tensions or rich equity prices, they shouldn’t overlook a critical one: the pay disparity between corporate bosses and workers. In 2015, the US Securities and Exchange Commission (SEC) adopted a rule that required public companies to disclose the median compensation of employees and that of the CEO, starting with fiscal year 2017. The numbers have confirmed what many suspected: CEOs are paid tremendously more than workers. The numbers also revealed that hundreds of the biggest US public companies pay their workers less than a living wage. That’s not sustainable. As the grim pay disclosures pile up year after year, the backlash against the corporate elite will intensify. If corporate boards can’t find a better balance in their pay structure, outside forces will, and at a potentially far greater cost to companies and their shareholders. My Bloomberg colleagues Ali...

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