Rounds Introduces Bill to Repeal Costly and Unnecessary Dodd-Frank Provision
WASHINGTON - U.S. Sen. Mike Rounds (R-S.D.), a member of the Senate Banking Committee, today introduced legislation to repeal the “pay ratio” rule embedded in Section 953 of the Dodd-Frank law. The statute requires the Securities and Exchange Commission (SEC) to promulgate a rule requiring companies to disclose the pay ratio of their CEO compared to a company’s median workers. Section 953 is not only redundant because CEO pay is already public, it would also cost businesses from $73 million to more than $700 million in compliance costs.
“Repealing the pay ratio rule would allow companies to find more productive uses of their time and money so they can invest in the future and create job opportunities,” said Rounds on the Senate floor today. “The money has to come from somewhere to pay for the new compliance systems required to follow this rule, taking away much-needed capital from businesses which could otherwise invest money growing their businesses and creating job opportunities. It is a waste of time, effort and money. The legislation I introduced today simply strikes this rule in Dodd-Frank.”