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) MenendezActing Defense chief calls Graham an 'ally' after tense exchange William Barr is right man for the times This week: Trump delivers State of the Union amid wall fight MORE (N.J.), as well as Sen. Bernie SandersBernard (Bernie) SandersKamala Harris: Trump administration ‘targeting’ California for political purposes Harry Reid says he won’t make 2020 endorsement until after Nevada caucus Gillibrand to appear on Fox News Monday night 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 ReedPapering over climate change impacts is indefensible Why Democrats are pushing for a new nuclear policy GOP chairman: US military may have to intervene in Venezuela if Russia does MORE (R.I.), Elizabeth WarrenElizabeth Ann WarrenKamala Harris: Trump administration ‘targeting’ California for political purposes Harry Reid says he won’t make 2020 endorsement until after Nevada caucus Gillibrand to appear on Fox News Monday night MORE (Mass.), Cory Booker (N.J.), Dick DurbinRichard (Dick) Joseph DurbinOvernight Energy: Trump ends talks with California on car emissions | Dems face tough vote on Green New Deal | Climate PAC backing Inslee in possible 2020 run Dems face tough vote on Green New Deal Durbin: Trump pressuring acting AG in Cohen probe is 'no surprise' MORE (Ill.), Chris Van Hollen (Md.), Jeff MerkleyJeffrey (Jeff) Alan MerkleyDems face tough vote on Green New Deal GOP Green New Deal stunt is a great deal for Democrats The border deal: What made it in, what got left out MORE (Ore.) and Al FrankenAlan (Al) Stuart FrankenVirginia can be better than this Harris off to best start among Dems in race, say strategists, donors Virginia scandals pit Democrats against themselves and their message MORE (Minn.).