Rounds Reaffirms Commitment to Repeal Pay Ratio Rule
WASHINGTON—U.S. Senator Mike Rounds (R-S.D.), a member of the Senate Banking Committee, today reaffirmed his commitment to repeal the pay ratio rule embedded in Section 953(b) of the Dodd-Frank Act. The Securities and Exchange Commission (SEC) is voting today to adopt the pay ratio rule.
“The pay ratio rule is a waste of time, effort and money, and the SEC is misguided in voting to adopt this duplicative, unnecessary rule,” said Rounds “Repealing the pay ratio rule – as my legislation seeks to do – would allow companies to find more productive uses of their time and money so they can invest in the future and create jobs. I will work to move it forward in the legislative process.”
The statute requires the SEC to promulgate a rule requiring companies to disclose the pay ratio of their CEO compared to a company’s median workers. Section 953 is not only redundant because CEO pay is already public, it would also cost businesses millions of dollars in compliance costs.