The House Committee on Financial Services is continuing to use pay ratio disclosure to hone in on human capital management issues at big banks. Yesterday, Committee Chair Maxine Waters (D-CA) issued a press release to recap what’s happened in recent hearings. It leads with a chart that highlights CEO pay and pay ratio at 8 banks. Based on that information, it says that Committee Democrats will continue to push for these steps:
– All megabanks should increase their minimum wage to at least $20 per hour by the end of the year, and to at least a “living wage” in the next two years so that all workers have enough to meet their basic needs, including food, housing, and clothing
– All boards for megabanks should consider ways to narrow excessive CEO-to-median worker pay ratios
– Financial regulators should finalize meaningful executive compensation rules that curb inappropriate compensation practices
Also yesterday, SEC Commissioners Rob Jackson & Allison Herren Lee issued a joint statement about the “modernization” amendments to Reg S-K that were proposed several weeks ago – expressing concern and soliciting comments about the proposal’s “principles-based” approach to human capital disclosure.
-Liz Dunshee, CompensationStandards.com August 28, 2019
