Just over the internet, via SEC Release: Conservative SEC member Piwowar, acting chair, has solicited input on compliance problems being faced by reporting companies in meeting the disclosure requirement, starting with respect to this year, of the ratio between CEO pay and median pay of all company employees. A Congressional mandate designed to shame CEOs into moderating the rise in their average pay, and a stupid idea from the onset, the pay ratio rule was delayed by years within the Commission even when the liberal Democratic majority was in charge. Interestingly, Piwowar as acting chair is adopting the “bleed them til they die” approach, not waiting around for Congress to outright kill this disclosure requirement (as I am sure they will). He went out fishing, whoops I mean asking, for companies to send to the SEC enough industry-driven excuses to support what is no doubt his goal: to defer effective date, and let companies stop spending time and money in gathering data, until Congress itself kills this foolishness. You cannot “disclose” CEOs into pay submission, and Congress should have been ashamed of itself to even try. There may be a lot good in Dodd Frank that gets shot down, but the pay ratio rule deserves its own quick death.
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