The Securities and Exchange Commission on Wednesday made waves in approving 3-2 a rule that will require most public companies to regularly disclose the ratio of chief executive pay to that of the average employee.
The rule came at the urging of Democrats like Senator Elizabeth Warren and worker groups like the AFL-CIO.
And it was approved despite opposition from the business community and Republicans.
The Chamber of Commerce is expected to sue over the rule. The head of its Center for Capital Markets Competitiveness David Hirschmann said that the rule “is more harmful than hurtful” and that the Chamber will seek to “clean up the mess. “To steal a line from Justice Scalia, this is pure applesauce,” SEC Republican Commissioner Daniel Gallagher said to Reuters. Companies argued that calculating median wages of workers is not cut-and-dry, especially for companies with lots of overseas workers, and that the new…
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