WASHINGTON, D.C. – The Securities and Exchange Commission (SEC) advanced a proposed rule that would require U.S. corporations to disclose the ratio of their CEO’s pay to their average workers’ salary.
The proposal advanced by a 3-2 vote with two Republican commissioners dissenting, and now goes to a 60-day public comment period.
“I welcome the SEC’s step today towards implementing this important rule and I look forward to reviewing their proposal,” said U.S. Sen. Bob Menendez (D-NJ), who sits on the Senate Banking and Finance Committees.
“I’m encouraged by the initial information out of the SEC today, but want to review the proposal to ensure that it strikes the right balance between flexibility and accountability. It’s been over three years since Wall Street Reform required public companies to report on pay disparities between CEOs and their average workers, and since then the gulf between them has only grown,” Menendez said. “We have middle class Americans who have gone years without seeing a pay raise, while CEO pay is soaring. This simple benchmark will help investors monitor both how a company treats its average workers and whether its executive pay is reasonable.”
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