The Securities and Exchange Commission will reconsider a recently imposed rule requiring corporations to disclose how much their CEOs make relative to workers, the acting chairman announced Monday.
Michael Piwowar, the acting commissioner while President Trump’s nominee is considered, said the SEC was seeking input from corporations about difficulties with the disclosures, a first step toward changing the rule that is disliked by companies and Republicans.
Following the departure of Mary Jo White, the Obama-appointed chairwoman, the commission doesn’t have the numbers needed to go through an actual rule-making to change the rule. But it can lay the groundwork for when Jay Clayton, Trump’s pick for chairman, is installed.
The rule took effect this year, and Piwowar, a Republican, requested comments on the rule from companies within 45 days. He has directed SEC staff to “reconsider the implementation of the rule” in light of those comments.
The rule requires corporations to disclose CEO pay relative to the pay of the median worker at the company.
Republicans have criticized the rule as representing an effort to shame companies for high CEO pay without any investor protection justification, and have raised objections about the way corporations are supposed to calculate median pay. GOP lawmakers say it could unfairly penalize businesses with lots of workers spread out in low-income areas.
