Public Citizen Applauds U.S. Senate Call for CEO Pay Disclosure Rule
WASHINGTON, D.C. – Public Citizen lauds the effort of 15 U.S. senators led by Sen. Robert Menendez (D-N.J.) to promote the implementation of a four-year-old law that requires publicly traded companies to disclose the ratio of CEO pay to that of the median-paid employee at the firm.
In a letter to the U.S. Securities and Exchange Commission (SEC), which must implement the law, the senators ask for immediate attention to this provision of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
“This is the simplest of the 400 rules mandated by the Wall Street reform law,” said Bartlett Naylor, financial policy advocate for Public Citizen’s Congress Watch division. “The rule is prepared and has the public support of two of the five SEC commissioners. SEC Chair Mary Jo White need only schedule a vote.”
“This rule will help investors better understand if CEOs and average workers receive appropriate compensation,” added Naylor. “That’s important in a day when too many CEOs siphon off extraordinary investor wealth while leaving the employees who generate the revenue from products and services underpaid. This is an unsustainable recipe both for the economy and for individual firms.”