SEC Approves CEO Pay Rule
The US Securities Exchange Commission (SEC) voted to adopt a new CEO-Worker Pay Ratio Rule at its August 5 Meeting, passing the rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (five years later).
The Washington Post put it clearly:
The Securities and Exchange Commission on Wednesday made it official: Public companies will soon have to say exactly how their chief executives' payday compares with a typical employee’s. In a 3-to-2 vote, the commission backed a long-delayed rule demanding that companies publicly share their "pay ratio," a potentially embarrassing corporate revealing that will highlight the country's growing workplace pay gap. Calling it "one of the most controversial rules" to arise out of the sweeping Dodd-Frank reform following the financial crisis, the rule's approving members, including SEC chair Mary Jo White, called it a thoughtful and reasonable measure that would help investors and workers better understand how companies reward both sides of their workforce.
This victory for working people did not come easy. A labor-led coalition that included CREDO Action, MoveOn.org, Americans for Financial Reform and Public Citizen delivered petitions signed by 165,000 Americans in July of 2015. As Heather Slavkin Corzo, the AFL-CIO Director of the Office of Investment said at the time: “It’s been five years since this proposal was passed under the Dodd-Frank Wall Street Reform and Consumer Protection Act, but no action has been taken to enforce it. The time to implement this proposal is long overdue and the American people are tired of waiting.”
For AFL-CIO President Richard Trumka’s response, see:
For the Post’s full article: http://www.washingtonpost.com/news/on-leadership/wp/2015/08/05/in-big-win-for-income-gap-fight-sec-approves-rule-comparing-ceo-and-worker-pay/
Read the official press release from The Securities and Exchange Commission: http://www.sec.gov/news/pressrelease/2015-160.html