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) MenendezDemocrats reject hardball tactics against Senate parliamentarian  Biden threatens more sanctions on Ethiopia, Eritrea over Tigray conflict Failed drug vote points to bigger challenges for Democrats MORE (N.J.), as well as Sen. Bernie SandersBernie SandersPelosi says House members would not vote on spending bill topline higher than Senate's Groups push lawmakers to use defense bill to end support for Saudis in Yemen civil war Congress must address the looming debt crisis 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.

ADVERTISEMENT

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 ReedTop Republican: General told senators he opposed Afghanistan withdrawal We have a plan that prioritizes Afghanistan's women — we're just not using it This week: Democrats kick off chaotic fall with Biden's agenda at stake MORE (R.I.), Elizabeth WarrenElizabeth WarrenDemocrats confront 'Rubik's cube on steroids' The Trojan Horse of protectionism Federal Reserve officials' stock trading sparks ethics review MORE (Mass.), Cory Booker (N.J.), Dick DurbinDick DurbinDemocrats up ante in risky debt ceiling fight Democrats reject hardball tactics against Senate parliamentarian  Biden to raise refugee cap to 125,000 in October MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeff MerkleyDemocrats revive filibuster fight over voting rights bill Senate backers of new voting rights bill push for swift passage Stacey Abrams backs Senate Democrats' voting rights compromise MORE (Ore.) and Al FrankenAlan (Al) Stuart FrankenAl Franken on another Senate run: 'I'm keeping my options open' Andrew Cuomo and the death of shame Could Andrew Cuomo — despite scandals — be re-elected because of Trump? MORE (Minn.).