The US SEC proposed scaling back what public companies must disclose about executive and board pay. Under the plan, most companies would report pay for only two executives. Investor advocates and lawmakers point to soaring compensation.
The US Securities and Exchange Commission on Friday proposed scaling back requirements for publicly traded companies to disclose detailed compensation information for executives and board members, according to a statement. Agency officials say the rules aim to turn back a creeping accumulation of requirements over time.
Two executives instead of the full roster
Under the proposal, covered companies would disclose pay packages for only two executives in most cases, the chief executive and the chief financial officer. The threshold for reporting workplace perks would rise from $10,000 to $150,000.
The new rules would also cut the number of disclosure tables shown to investors during proxy votes. In addition, they would shrink the population of workers used to determine the median employee whose pay is compared with that of top executives, among other changes.
SEC Chair Paul Atkins said the new rules would help limit disclosures to what investors actually need to know.
Pay gap remains a political issue
However, investor advocates and lawmakers have pointed to soaring compensation, with C-suite pay growing in recent decades far faster than that of the workers they employ. During this year's midterm elections, some Democratic candidates cited these disparities.
Better Markets, an advocacy organization that calls for tougher oversight of Wall Street, said last year that CEO pay has risen more than 1,000% over the last 50 years. The group said the median S&P 500 pay package hit $17 million in 2024, while worker pay over the period climbed only 24%.
Source: Reuters via Investing.com
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