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 (Bob) MenendezCNN anchors break into laughter over comedian's alleged prank call to Trump Comedian claims he tricked Trump while impersonating Dem senator Schumer: Obama 'very amenable' to helping Senate Dems in midterms MORE (N.J.), as well as Sen. Bernie SandersBernard (Bernie) SandersBernie Sanders: Trump 'so tough' on child separations but not on Putin Bernie Sanders tells Kansas crowd: This 'sure doesn’t look' like a GOP state The Hill's Morning Report — Trump and Congress at odds over Russia 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 ReedJohn (Jack) Francis ReedSenate Dems press for info on any deals from Trump-Putin meeting Senate Dems tell Trump: Don't meet with Putin one-on-one Schumer: Trump should cancel meeting with Putin MORE (R.I.), Elizabeth WarrenElizabeth Ann WarrenOn The Money: Trump 'ready' for tariffs on all 0B in Chinese goods | Trump digs in on Fed criticism | Lawmakers drop plans to challenge Trump ZTE deal On The Money: Trump rips Fed over rate hikes | Dems fume as consumer agency pick refuses to discuss border policy | Senate panel clears Trump IRS nominee Dems fume as Trump's consumer bureau pick refuses to discuss role in border policy MORE (Mass.), Cory Booker (N.J.), Dick DurbinRichard (Dick) Joseph DurbinSenate approves resolution warning Trump not to hand over US officials Deal to fix family separations hits snag in the Senate Senate Democrats block resolution supporting ICE MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeffrey (Jeff) Alan MerkleySunk judicial pick spills over into Supreme Court fight Controversial Trump judicial nominee withdraws Anti-Trump protesters hold candlelight vigil by White House MORE (Ore.) and Al FrankenAlan (Al) Stuart FrankenControversial Trump judicial nominee withdraws AP Analysis: 25 state lawmakers running in 2018 have been accused of sexual misconduct Franken offers Dems a line of questioning for Kavanaugh's 'weirdly specific bit of bulls---' MORE (Minn.).