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) MenendezDems urge tech companies to remove 3D-gun blueprints Dem senators introduce resolution calling on Trump to stop attacking the press Booming economy has Trump taking a well-deserved victory lap MORE (N.J.), as well as Sen. Bernie SandersBernard (Bernie) SandersTrump's trade war — firing all cannons or closing the portholes? The Hill's 12:30 Report — Trump rips 'ridiculous' spending bill | FBI dragged into new fight | Latest on Maryland shooting Poll: Most Massachusetts voters don't think Warren should run for president in 2020 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 ReedNew York Times: Trump mulling whether to replace Mattis after midterms Overnight Defense: Biden honors McCain at Phoenix memorial service | US considers sending captured ISIS fighters to Gitmo and Iraq | Senators press Trump on ending Yemen civil war Senators press Trump administration on Yemen civil war MORE (R.I.), Elizabeth WarrenElizabeth Ann WarrenMore Massachusetts Voters Prefer Deval Patrick for President than Elizabeth Warren Trump's trade war — firing all cannons or closing the portholes? Poll: Most Massachusetts voters don't think Warren should run for president in 2020 MORE (Mass.), Cory Booker (N.J.), Dick DurbinRichard (Dick) Joseph DurbinGrassley to administration: You must consult Congress on refugee cap Overnight Health Care: Senators target surprise medical bills | Group looks to allow Medicaid funds for substance abuse programs | FDA launches anti-vaping campaign for teens Bipartisan group wants to lift Medicaid restriction on substance abuse treatment MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeffrey (Jeff) Alan MerkleyOvernight Energy: Warren bill would force companies to disclose climate impacts | Green group backs Gillum in Florida gov race | Feds to open refuge near former nuke site Warren wants companies to disclose more about climate change impacts DHS transferred about 0M from separate agencies to ICE this year: report MORE (Ore.) and Al FrankenAlan (Al) Stuart FrankenElection Countdown: Trump confident about midterms in Hill.TV interview | Kavanaugh controversy tests candidates | Sanders, Warren ponder if both can run | Super PACs spending big | Two states open general election voting Friday | Latest Senate polls #MeToo era shows there's almost never only one accuser, says Hill.TV's Krystal Ball Hypocrisy in Kavanaugh case enough to set off alarms in DC MORE (Minn.).