Professor Daniel O’Connor and I were proud to sponsor a talented senior, Delia Geyer at Moravian College for an honors project during the 2020-2021 academic year. Her project was a continuation of the CEO Pay Ratio project completed during the previous academic year by Alex Tursi, another Moravian graduate. Her abstract and poster are included below.


The CEO Pay Ratio is a required disclosure enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act, “the Act”). This study seeks to identify the relationship between the independent variable, revenue, and the dependent variable, the CEO Pay Ratio (“the Ratio”). This study includes a novel social justice variable to test if it affects the Ratio. Data about the Ratio is only available for three years, as the disclosure is a fairly new requirement. Using a fixed effects model, I analyzed the 65 companies that are included in the Dow Jones Transportation, Industrial, and Utility Averages. Findings showed that while revenue is not a significant determinant of the Ratio, a higher market cap results in a lower Ratio. Moreover, the Ratio is lower in the Transportation and Utility Averages than in the Industrial Average. Industry was found to be the main determinant of the Ratio.