Business

Lawmakers Anxious to Enact Dodd-Frank Reg Forcing Disclosure of CEO Pay

Did you know that Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires publicly traded companies to disclose the ratio of CEO pay as a “proportion of the median-paid employee at the firm”?

And although this provision is in the bill, it hasn’t been implemented because the Securities and Exchange Commission has yet to propose a single regulation for public comment, “which would get the ball rolling on enforcing the act,” writes Chris Morran of The Consumerist.

In response to this the SEC’s failure to do this, several members of the Congress and Senate have written the federal agency, imploring it to act.

Here is an excerpt from the letter sent to SEC Chair Mary Schapiro:

 [I]ncome inequality is a growing concern among many Americans. Incomes at the very top have skyrocketed while workers’ wages and incomes have stagnated. In fact, over the last decade, median family income actually fell for the first time since the Great Depression. And while comprehensive data will not be available until this provision takes effect, there is no question that CEO pay is soaring compared to that of average workers. In 1980, CEOs of larges U.S. companies received an average of $624,996 in annual compensation, or 42 times the pay of typical factory workers. But by 2010, large company CEO pay had skyrocketed to $10.8 million, or 319 times the median worker’s pay.

Unsurprisingly, several companies have fought the regulation, using the excuse that it would “be difficult to figure out the median pay of their staff,” Morran writes. But lawmakers (and even the SEC’s own accountant) think this is a load of nonsense and that it wouldn’t be that “complex a calculation for a business to make.”

“Such claims either constitute an embarrassing confession about widespread mismanagement of a central financial issue, or a disingenuous smokescreen,” writes Public Citizen’s Bartlett Naylor. “The idea that firms have no idea what they pay their staff is ludicrous.”

According to The Consumerist, lobbyists have spent in excess of $4.5 million trying to have this provision swept under the rug.

And although one may question whether the companies can do the “complex calculation,“ or why they would lobby to have this regulation ”swept under the rug,” perhaps the bigger question is this: why, exactly, does  Dodd-Frank require publicly traded companies to disclose this information?

And who signed this letter sent to the SEC anyway?

In case you were wondering, here are the signatures from Congress:

Rep. Keith M. Ellison (D-MN)
Rep. John Olver (D-MA)
Rep. John Conyers (D – MI)
Rep. Luis V. Gutierrez (D-Ill)
Rep. Louise Slaughter (D-NY)
Rep. Pete Stark (D-CA)
Rep. Edolphus Towns (D-NY)
Rep. Maxine Waters (D-CA)
Rep. Mel Watt (D-NC)
Rep. Elijah E. Cummings (D-MD)
Rep. Rubén Hinojosa (D-TX)
Rep. Barbara Lee (D-CA)
Rep. Michael Capuano (D-MA)
Rep. Jan Schakowsky (D-Ill)
Rep. Bob Filner (D – CA)
Rep. Raul Grijalva (D-AZ)
Rep. Brad Miller (D-NC)
Rep. Peter Welch (D-VT)
Rep. Andre Carson (D-IN)
Rep. Gary Peters (D – MI)

And the five celebrity-style autographs from the Senate can be seen here.

Comments (64)

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  • pdw
    Posted on March 10, 2012 at 8:29am

    I would only like one change to that bill and that is ALL Federal Elected and appointed officials be required to disclose all of their holding and how they compare with their votes. In other words where their hands are each time they vote! Follow the money trail!

    Report Post »  
    • poorrichard09
      Posted on March 10, 2012 at 8:40am

      Right on the money! These members of CONgress want to throw some red meat to their OWS mobs-let’s show much these politicians are worth too.

      Report Post »  
    • ron2win
      Posted on March 10, 2012 at 8:51am

      I would be more then happy to endorse this bill if it also included What every politition was worth when they first were elected and what they are worth now.Now that you know you will never see !

      Report Post »  
    • lukerw
      Posted on March 10, 2012 at 9:48am

      How about… all boxes must disclose… the length of their Penis’?

      Report Post » lukerw  
    • Walkabout
      Posted on March 10, 2012 at 9:53am

      High Lord Dodd has a fiefdom in in Ireland. It is a 5 million dollar mansion in Ireland, but let’s be real, it is the beginning of a future estate by a noble lord.

      He was a special buddy of the CEO of Country Companies, “A Friend of Angelos”.

      Lord Dodd doesn’t have to make a lot of money. His mortgage was way cheaper than a commoners.

      If you get a preferential lower interest rate, then you don’t need a big bucks salary & yet you live like a King!

      Report Post »  
    • Ruler4You
      Posted on March 10, 2012 at 11:13am

      Well, “I’M” anxious to see BOTH of these criminals looking at striped sun light!

      Frank, as the House oversight chair of Freddie Mac and Dodd as Senate oversight chair for the SEC, BOTH failed to competently chair their responsibilities while insider trading on knowledge they had from those financial bodies and legislation they advanced to favor them, even as they dissolved under their regulatory oversight.

      Literally destroying TRILLIONS of dollars in equity here in the U.S. and TRILLIONS in the international community. We are STILL suffering the economic, social and political consequences of their outright malfeasance. And we WILL continue for many years to come.

      I want to see a boat cover made out of Barney’s hide. And Chris Dodd buried in an ant hill covered in honey. Their bones fed to pigs.

      Report Post » Ruler4You  
    • NancyBee
      Posted on March 10, 2012 at 11:55am

      WE THE PEOPLE……should demand these reps. to show us their money…..how they got it …when they got it…who they got it from………….and push for them to be part time emoloyees

      Report Post » NancyBee  
    • BuggiOlleo
      Posted on March 10, 2012 at 2:15pm

      Bully!

      Report Post » BuggiOlleo  
    • NHwinter
      Posted on March 10, 2012 at 3:20pm

      [I]ncome inequality is a growing concern among many Americans. No it isn’t. Just to the Progressives/Democrates.

      Report Post » NHwinter  
    • mlite9
      Posted on March 10, 2012 at 5:29pm

      Sure, only let‘s be sure to disclose Chris Dodd’s MPAA salary as well…

      Report Post »  
    • Lonescrapper
      Posted on March 11, 2012 at 9:34am

      I prefer that congress be forced to disclose what stocks they are buying and how their vote will affect the price of that stock.

      Report Post » Lonescrapper  
  • piper60
    Posted on March 10, 2012 at 7:54am

    The Dodd Frank bill needs to be repealed and Stricken from the record. Just like every piece of legislation those two ever worked on. They all harm our freedom and the country in general.

    Report Post » piper60  
  • getourcountryback
    Posted on March 10, 2012 at 7:27am

    I am confused about where income equality is written in the bill of rights? Could someone please point that out to me.

    Report Post »  
  • EP46
    Posted on March 10, 2012 at 7:26am

    REPEAL Dodd-Frank …it is sooooooooo dangerous for our economic stability. This has “hidden nuggets” just as bad as obamacare ! It is a job killer…it does not stop ‘bailouts’ ….it will pay whistleblowers for ‘private company’ info…..
    This is a HUGE step forward for the government to control private corporations…like Hugo Chavez???

    Report Post »  
  • AJAYW
    Posted on March 10, 2012 at 5:40am

    None of those democrates who signed this letter could make it in the business world. The only think they know how to do is live off the tax payer- None of them earned a honest living where they worked for it.

    Report Post »  
  • georgepatton
    Posted on March 10, 2012 at 4:54am

    Dodd/Frank two low-lifes that should be in JAIL!!!!!!!!!!!!!!

    Report Post »  
  • Anne G
    Posted on March 10, 2012 at 4:00am

    With everything that is wrong with fannie and freddie, all I can say is “big fricken deal.” I guess they figure they can convince us they are doing something huge in the way fannie and freddie work. Shut’em down.

    Report Post » Anne G  
  • Expatjames
    Posted on March 10, 2012 at 2:09am

    I know, why don’t we see the amount of income of all these democrats and all their insider trades. Wouldn’t that be.

    Report Post »  
  • Netsurfer2
    Posted on March 10, 2012 at 2:01am

    Move along people, nothing to see here! Just another POS in our government!

    Notice they are all Democrats???

    We really have a lot to clean up in our Government! (Lawyers)

    It always seems, the more laws we have the less choices we can make in life and the higher taxes we pay!

    Report Post » Netsurfer2  
  • MrMagoo
    Posted on March 10, 2012 at 1:45am

    I wonder if Chris Dodd still enjoys waitress sandwiches,now that he’s older?Now that Ted is dead and all.Just wonderin’…

    Report Post » MrMagoo  
  • Warm In The Desert
    Posted on March 10, 2012 at 1:14am

    The same issue here in Britain is being discussed by the Liberals and Mr. Miliband. I see the list above are all democrats, or as you refer progressives.

    No business is it of theirs…none at all. I would ask of the signatories where does your campaign money come from, and what during your tenure have you taken advantage of insider trading.

    Quite a public list of progressives…perhaps their constituents should vote otherwise when next an election comes.

    Report Post » Warm In The Desert  
  • SandyfromChesterfield
    Posted on March 10, 2012 at 1:13am

    It sounds like they need this information to get reelected.

    Report Post »  
  • StudyYourHistoryB
    Posted on March 10, 2012 at 12:10am

    Just a question? Would lawmakers be “Anxious” if We The People voted their Pay (the Lawmakers) to be equal to the median income of the district or state they represent? oh i forgot they (the lawmakers) vote for their pay levels we do not. oops… How about public school admin offices be held to the same value. Would our taxes be lower and, would it drive lawmakers to bring business and industry to our towns in stead of attacking b&i. Oh who would have thought our government got it wrong again.

    Report Post » StudyYourHistoryB  
  • BurntHills
    Posted on March 10, 2012 at 12:05am

    who cares, we do not. a poor man never built a factory or a railroad or an ironworks and hired anyone.

    to force our nation’s CEOs to disclose what they make in their private businesses, is pure communism and new world order. …obama and his filthy buttbuddies show his colors: COMMUNIST.

    Report Post » BurntHills  
  • smokey888x2
    Posted on March 9, 2012 at 11:42pm

    “[I]ncome inequality is a growing concern among many Americans.”

    I took the total number of CEO’s and divided them across the country. Roughly, there’s one for about every 3 counties …. what if they were doctors. What would you pay one doctor per three counties to see him? “Income inequality … ” WHAT A BUNCH OF SOLIALISTIC CRAP! Government is not my religion. There’s no religion in an exchange at Lowes, McDonald’s or any private business, then why is government attempting to be my religion?!! The democrat party has been taken over by communist.

    Report Post » smokey888x2  
  • Whats up with that
    Posted on March 9, 2012 at 11:10pm

    Disclosure???…That will do nothing…Let’s see the disclosure on Dodd / Frank making money on stock tips they made being in power…Next thing ya know they’ll be getting sweet hart deals for their own personal mortgage…Oh wait, that already is on the books…“Friends of Angelo”…

    Report Post » Whats up with that  
  • Al J Zira
    Posted on March 9, 2012 at 10:08pm

    As soon as members of congress makes public how much each individual makes off of inside trading, then I might be concerned with what a CEO makes.

    Report Post » Al J Zira  
  • AM-Saves
    Posted on March 9, 2012 at 9:35pm

    Let this be a lesson to all those companies which support intrusive, power-hungry invalids like these congressmen & women, while you think you can sway these dogs to screw over your competition, they’ve got no problem with screwing you right along with them.

    For those of us who don’t own companies ( or refuse to start one under the current dictatorship ), remember that congress is supposed to be OUR voice. While I actually have representatives that do voice my conservative views, they are largely ignored while these socialist zealots decide business owners & executives should expose their pay rates, something I would deem personal information.

    When’s the last time you really felt represented by congress or the senate?
    Conversely, when don’t you feel you are being REPRESSED by congress or the senate??

    Report Post »  
    • michael48
      Posted on March 9, 2012 at 10:04pm

      good post…tired of the Rino/Lib-tard…good cop/bad cop crap…he!! THEY CAN’T QUIT BORROWING LONG ENOUGH TO BUDGET SPENDING….dam they can’t get a budget out of the senate…three years????

      Report Post »  
  • Archstone
    Posted on March 9, 2012 at 9:25pm

    The American People would like to see the complete financial statements of all members of congress,
    including all property owned, including homes, vehicles, physical precious metals, bank accounts, retirement accounts, profits from insider trading, overseas holdings of all of the above…. Let’s get a
    good look at the people Occupy Wall Street should actually be occupying.

    Report Post »  
    • USAMEDIC3008
      Posted on March 9, 2012 at 11:24pm

      #e!! Yea
      A. Weiner exposed hih assetts
      N Pelosie may enjoy doing short arm inspections
      in the house

      Report Post » USAMEDIC3008  
  • Baddoggy
    Posted on March 9, 2012 at 9:12pm

    Our Nation’s lawmakers would be an embarassment to our Founders. I would simply ask the Congress where they derive the powers to complel me to report this….After all it isnt in the Good and Plenty clause…

    Tell them to go screw themselves…

    Report Post » Baddoggy  
  • Carefreeflyer
    Posted on March 9, 2012 at 8:47pm

    Just another liberal diversion from these two idiots who caused this historical mess.

    Report Post » Carefreeflyer  
  • Apple Bite
    Posted on March 9, 2012 at 8:44pm

    That one illegible sig belongs to Barbara Boxer….

    Report Post » Apple Bite  
    • Apple Bite
      Posted on March 9, 2012 at 8:48pm

      Come to think of it, some of the biggest and greatest crooks in history had the most illegible signatures ever…

      Report Post » Apple Bite  
  • Watcher11
    Posted on March 9, 2012 at 8:29pm

    All the names seems to come from the people who lost the last election and they don’t have power so we are supoosed to listen to them why?

    Report Post » Watcher11  
  • justangry
    Posted on March 9, 2012 at 8:18pm

    I just want to know who owns the federal reserve.

    Report Post » justangry  
    • IndyGuy
      Posted on March 9, 2012 at 8:26pm

      The federal reserve is one crooked S.O.B…

      Report Post » IndyGuy  
  • IndyGuy
    Posted on March 9, 2012 at 8:18pm

    I agree…Let’s see it…

    Report Post » IndyGuy  
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