As of January 1, companies will have to make public how much their CEOs make compared to what their average workers make. They don’t like that rule so much — enacted thanks to Dodd-Frank — and they might be able to get it killed.
On Monday, the acting chairman of the Securities and Exchange Commission (SEC), Michael Piwowar, called for reconsideration of the rule that went into effect on January 1, hinting that it could be reversed.
“[I]t is my understanding that some issuers have begun to encounter unanticipated compliance difficulties that may hinder them in meeting the reporting deadline,” he wrote. So he called for a new period of public input over the next 45 days, after which he will direct the SEC staff to “reconsider the implementation of the rule based on any comments submitted and to determine as promptly as possible whether additional guidance or relief may be appropriate.”
Translation: Companies don’t want people to know how much more their CEOs make than the median worker, and rather than admitting that they don’t want people to know that, they’re calling it “unanticipated compliance difficulties.”
This rule isn’t something Republicans can just kill off immediately, but that’s clearly the direction they’re headed. Businesses have a lot to hide, after all. Like how CEOs make 276 times more than typical workers, while the corporate world lobbies against policies that benefit workers, like paid sick leave, paid family leave, or increased minimum wage.
Meanwhile, Donald Trump is stocking his cabinet with former CEOs.