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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 gear up for major push to lower drug prices Biden under pressure to spell out Cuba policy Senators to Biden: 'We must confront the reality' on Iran nuclear program MORE (N.J.), as well as Sen. Bernie SandersBernie SandersHillicon Valley: Amazon wins union election — says 'our employees made the choice' On The Money: Biden .5T budget proposes major hike in social programs | GOP bashes border, policing provisions Overnight Defense: Biden proposes 3B defense budget | Criticism comes in from left and right | Pentagon moves toward new screening for extremists 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 ReedOn The Money: CDC extends coronavirus eviction ban through June 30 | Biden to detail infrastructure proposal Wednesday | US won't quickly lift Trump tariffs on China Senate panel ties on embattled Pentagon nominee Battle heats up over Pentagon spending plans MORE (R.I.), Elizabeth WarrenElizabeth WarrenOn The Money: Biden .5T budget proposes major hike in social programs | GOP bashes border, policing provisions Overnight Defense: Biden proposes 3B defense budget | Criticism comes in from left and right | Pentagon moves toward new screening for extremists POW/MIA flag moved back atop White House MORE (Mass.), Cory Booker (N.J.), Dick DurbinDick DurbinLawmakers say fixing border crisis is Biden's job Number of migrants detained at southern border reaches 15-year high: reports Grassley, Cornyn push for Senate border hearing MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeff MerkleyGreen tech isn't all it's cracked up to be 2024 GOP White House hopefuls lead opposition to Biden Cabinet 33 Democrats urge Biden to shut down Dakota Access Pipeline MORE (Ore.) and Al FrankenAlan (Al) Stuart Franken#MeWho? The hypocritical silence of Kamala Harris The Hill's Morning Report - Presented by Facebook - Senate Dems face unity test; Tanden nomination falls Gillibrand: Cuomo allegations 'completely unacceptable' MORE (Minn.).