Bernie Sanders, Menendez 'troubled' by delay of CEO pay rule

Bernie Sanders, Menendez 'troubled' by delay of CEO pay rule
© Victoria Sarno Jordan

The Securities and Exchange Commission (SEC) is coming under scrutiny from Senate Democrats like Bob MenendezRobert MenendezBipartisan group, Netflix actress back bill for American Latino Museum The Mideast-focused Senate letter we need to see Taiwan deserves to participate in United Nations MORE (N.J.), as well as Sen. Bernie SandersBernie SandersParliamentarian deals setback to GOP repeal bill OPINION | Hey Dems, Russia won't define 2018, so why not fix your party's problems instead? OPINION | They told us to abandon ObamaCare — then came the resistance MORE (I-Vt.), for delaying a Dodd-Frank rule requiring a company’s top executive to reveal how much money they make in comparison to their employees.

The CEO-to-worker pay disclosure rule was a key provision of the Obama administration’s efforts to clean up Wall Street.

The SEC passed the rule in August 2015, and it was scheduled to go into effect this year. But acting Chairman Michael Piwowar, a Republican, delayed the rule in February, noting companies encountered “unanticipated compliance difficulties.”

In a letter to Piwowar sent Tuesday, Sanders and eight Senate Democrats said they are “extremely troubled” by the recent delay and accused the SEC's acting chairman of attempting to “discredit the rule and generate momentum to repeal” it.

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They pointed out that CEOs at the nation’s largest companies make an average of “$335 dollars for every dollar earned by a typical employee.”

“Pay ratio disclosure helps investors evaluate the relative value a CEO creates, which facilitates better checks and balances against insiders paying themselves runaway compensation,” the senators wrote.

“Similarly, when a CEO asks for a raise while giving other employees a pay cut, investors should have this information,” they added.

Sanders made wages and income inequality a key issue last year during his presidential campaign.

The Senate Democrats who signed the letter include Menendez, who pushed for the CEO pay disclosure provision to be included in the Dodd-Frank financial reform law, Jack ReedJack ReedArmed Services leaders appoint strategy panel members Senators ask for Syria policy study in defense bill Overnight Defense: Senate confirms Pentagon No. 2 | Uncertain future for Iran deal | Trump to visit Pentagon Thursday | Key general opposes military space corps MORE (R.I.), Elizabeth WarrenElizabeth WarrenScaramucci deletes old tweets bashing Trump Trump's new communications chief once called him a 'hack' OPINION | Hey Dems, Russia won't define 2018, so why not fix your party's problems instead? MORE (Mass.), Cory Booker (N.J.), Dick DurbinDick DurbinSenators who have felt McCain's wrath talk of their respect for him Graham and Kushner met to discuss immigration differences: report Trump's FBI nominee passes committee, heads to full Senate MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeff MerkleyOPINION | Shailene Woodley: US should run on renewable energy by 2050 Gore wishes Mikulski a happy birthday at 'Inconvenient Sequel' premiere Callista Gingrich touts Trump's commitment to environment despite Paris deal pullout MORE (Ore.) and Al FrankenAl FrankenSunday shows preview: Scaramucci makes TV debut as new communication chief The Hill's 12:30 Report OPINION | Liberal hysteria over Trump's voter fraud panel proves why it's needed MORE (Minn.).