loader
Page is loading...
Print Logo Logo
generic_insight_detail

SEC Proposes Disclosure of Difference Between CEO and Worker Pay


A hotly-divided Board of the U.S. Securities and Exchange Commission (SEC) released a proposal this week calling for public companies to disclose compensation data allowing for a comparison of their Chief Executive Officer’s pay to the median pay of their rank-and-file employees. The release of this proposal, passed by a vote of 3-2 along party lines, is now open for public comment over the next couple of months. In order for the proposal to go into effect, the SEC will again vote on it after the period for comments closes.

This proposal notably has garnered criticism by members of the SEC, as well as corporations throughout the country, while gaining favor with labor unions and those demanding more transparency in executive pay and a slowdown of raises for highly-paid executives. Prior to the vote this week, Michael Piwowar, a Republican member of the Commission, expressed his distaste for the proposal and the expenditure of SEC resources on matters he believes could harm investors, negatively affect competition, promote inefficiency and limit capital formation. SEC Chairman Mary Jo White, however, was quick to rebut Mr. Piwowar’s concerns, advising that the SEC had responsibly considered the proposed rules, and that they were aligned with legal mandates of the Dodd-Frank Act and had been in the making for many years.

This proposal should be watched by employers in the months ahead to keep abreast of the final outcome based on the commentary received.


RELATED ARTICLES

Did the Supreme Court Just Invite Greenhushing? Not So Fast 2024's

August 9, 2024 | Environmental, Enforcement, Securities and Capital Markets

SEC Staff Issues Comments on Earnings Calls and MD&A Disclosures

May 15, 2024 | Securities and Capital Markets

More on New SEC Climate Disclosure Rules

May 13, 2024 | Securities and Capital Markets

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.