U.S. Chamber of Commerce Center for Capital Markets Competitiveness President and CEO David Hirschmann today issued the following statement in regards to the final pay ratio rule released by the Securities and Exchange Commission (SEC):
“Congress added this disclosure to Dodd-Frank as a favor to union lobbyists who misguidedly think it will help their organizing efforts. When disclosure is used to advance special interest agendas rather than provide investors with better information, it is a step in the wrong direction.
“At best, pay ratio is a misleading, politically-inspired, and costly disclosure that fails to provide investors with useful, comparable data. For example, a domestic company might have a better pay ratio than a multinational company due to legal, currency or cost of living differences, creating a situation that is like trying to compare baseball to basketball stats when it’s a whole different ballgame.
Print This Post Email This Post