Members of Congress Send Letter to SEC Chair White Regarding Finalization of Pay Ratio Disclosure Rules

Fifty-eight members of Congress ("Members") signed a letter to SEC Chair Mary Jo White urging the SEC to finalize its proposal regarding executive compensation disclosure.

According to the Members, the SEC's proposal, which implements Dodd-Frank Section 953(b), "reflects the legislative intent of Dodd-Frank" and "effectively addresses any concerns regarding compliance costs." The Members argued that disclosure will provide information that can help investors to (i) cast informed "say-on-pay" advisory votes by allowing them to evaluate the "reasonableness" of CEO pay levels relative to those of other company employees and (ii) determine whether a company's employees are fairly compensated.

See: Congressional Letter to Chair White.Related news: SEC Publishes Pay Ratio Disclosure Rule (Fed. Reg.) (October 1, 2013); SEC Proposes Rule for Pay Ratio Disclosure (with Lofchie Comment) (September 18, 2013).