The Center On Executive Compensation, representing a cross-section of America’s large employers, applauds the decision by Acting Chairman Michael S. Piwowar of the U.S. Securities and Exchange Commission (SEC) yesterday that calls for additional public comment on the pay ratio disclosure rule, Section 953(b) of the Dodd-Frank Act.
As attention focused this week on confirmation hearings for several cabinet nominees, the Center released a blog post stating that executives and company directors should be encouraged to serve in the government by developing transition arrangements "that address potential conflicts of interest while also addressing, in a fair and appropriate way, the longer term nature of executive and director compensation."
President-Elect Donald Trump announced the nomination of Sullivan & Cromwell attorney Walter "Jay" Clayton as the next Chair of the SEC. A corporate transactions and securities attorney, Mr. Clayton's nomination fits into the mold of other major Trump Cabinet position nominees - non-politicians with extensive business experience.
In 2010, the Securities and Exchange Commission issued a Concept Release on the U.S. Proxy Plumbing System which included an discussion on the conflicts of interest inherent in the proxy advisory firm industry.
The Commissioner of the SEC sets the agency's rulemaking agenda and can prioritize certain items over others.