The House Financial Services Committee approved the Center-supported Burdensome Data Collection Relief Act, H.R. 414, which would repeal the Dodd-Frank pay ratio in its entirety, marking the third consecutive session of Congress which the Committee has approved repeal and sent it to the full House of Representatives.
The Center's Comments make a strong case that a final rule should provide sufficient discretion to allow company boards to always act in a manner which fulfills their fiduciary duties to the company and its shareholders.
Despite the articles lauding the "insight" that the pay ratio disclosures will bring in 2018, this week ISS and a UK Shareholder group expressed doubts about the pay ratio's ability to provide useful information in a Bloomberg article examining how investors may use the disclosure.
The 2014 Proxy Season saw more than 80% of S&P 500 companies receive more than 90% shareholder say on pay support.
According to Center data, nearly one in five S&P 500 companies included either a realized pay or realizable pay disclosure as a supplement to the summary compensation table.