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) MenendezSenate must save itself by confirming Mike Pompeo Poll: Menendez has 17-point lead over GOP challenger Russian attacks on America require bipartisan response from Congress MORE (N.J.), as well as Sen. Bernie SandersBernard (Bernie) SandersOvernight Finance: Treasury mulls sanctions relief for Russian aluminum firm | Trump floats tying NAFTA talks to border security | 14 states hit record-low unemployment Kamala Harris will no longer accept corporate PAC money Judd Gregg: Who wins with Paul Ryan's departure? 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 ReedDems walk tightrope on Pompeo nomination Dem senators call on FCC to protect against robocalls Senate Dems press Trump on legal justification for potential Syria strike MORE (R.I.), Elizabeth WarrenElizabeth Ann WarrenKamala Harris will no longer accept corporate PAC money Pompeo faces pivotal vote Dem senators demand Trump explain ties to Koch brothers MORE (Mass.), Cory Booker (N.J.), Dick DurbinRichard (Dick) Joseph DurbinPompeo faces pivotal vote To succeed in Syria, Democrats should not resist Trump policy Hannity, Kimmel, Farrow among Time's '100 Most Influential' MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeffrey (Jeff) Alan MerkleyOvernight Energy: Senate confirms Bridenstine as NASA chief | Watchdog probes Pruitt’s use of security detail | Emails shine light on EPA science policy changes 32 male senators back Senate women's calls to change harassment rules Duckworth brings her baby to Senate vote, drawing a crowd MORE (Ore.) and Al FrankenAlan (Al) Stuart FrankenFranken to make first public appearance since resignation Overnight Cybersecurity: Fallout from Comey memos | IG reportedly investigating memos over classified info | DNC sues Russia, Trump campaign | GOP chair blasts FDIC over data security Why Smokin' Joe leads the pack of 2020 Democratic hopefuls MORE (Minn.).