Public firms must disclose CEO-to-median worker salary ratio
A new federal rule first passed under the Dodd-Frank Act will require public companies to list their chief executives’ total annual compensation as a ratio to their workers’ median pay.
The 3-2 party line vote at the Securities & Exchange Commission comes five years after Congress approved Dodd-Frank. The vote today comes nearly two years after the SEC formally proposed the requirement.
Financial Services Committee Chairman Jeb Hensarling, R-Texas, along with Capital Markets and Government Sponsored Enterprises Subcommittee Chairman Scott Garrett, R-N.J., and Monetary Policy and Trade Subcommittee Chairman Bill Huizenga, R-Mich., wrote a letter to SEC Chair Mary Jo White encouraging her and the Commission not to prioritize the completion of this controversial rule ahead of other much-needed rules, including many within the bipartisan JOBS Act.