A divided U.S. Securities and Exchange Commission will propose that public companies disclose how much more their chief executives earn than rank-and-file workers.
Bloomberg News reports that SEC commissioners meeting in Washington today will vote to propose and seek comment on a requirement that has been opposed by the agency’s two Republican members and more than 20 large business lobbying groups, which say the data will be costly to compile and won’t help investors.
The disclosure rule, championed by unions and some congressional Democrats, must be issued under the 2010 Dodd-Frank law.
Senator Robert Menendez, a New Jersey Democrat who wrote the Dodd-Frank provision requiring the disclosure, has told the SEC the calculation must include non-U.S. employees and part-time workers.
'When I wrote ‘all’ employees of an issuer, I really did mean all employees of an issuer', Menendez wrote in a letter to the SEC shortly after the law was passed and lobbying began to shape the rule.
Business groups urged the SEC to exclude non-U.S. employees from the proposal, saying it’s technically challenging to reconcile pay practices in other countries with U.S. disclosure rules.
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