SEC Will Finalize Pay Gap Rule
At today’s Securities and Exchange Commission (SEC) meeting, the agency’s commissioners are expected to vote to approve controversial pay gap rules. The rules were mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and require banks and other covered entities to disclose their pay ratios, reflecting the pay gap between top executives and entry level positions. The rule has received pushback from the industry, especially with respect to its inclusive calculation, which contains the salaries of foreign workers, not just domestic ones.
Conversely, the SEC has received a good deal of scrutiny for its delay in implementing the rules. Members of the media and Congress have consistently pushed the agency to finalize remaining rulemakings from the Dodd-Frank Act. While the passage of the pay gap rules will quiet some concerns, the SEC still has several outstanding Dodd-Frank Act rulemakings.