The Securities and Exchange Commission (SEC) hasn’t implemented a new CEO pay rule, and Senate Democrats are pushing to move the initiative forward.
Under the 2010 Dodd-Frank financial reform law, the SEC was required to create a rule ensuring all companies publicly disclose the ratio of their CEO's pay to the average earnings of workers at the business. More than three years after the law was passed, the SEC proposed the rule.
Though it’s been 18 months since the rule was introduced, the SEC has not finalized it. It usually takes just 60 days for a rule to be approved and implemented.
"This is just another example of the SEC not acting on the authority we gave them under Wall Street reform," Democratic Sen. Al Franken of Minnesota said in a statement to The Huffington Post. "Since the legislation was signed into law, efforts by the SEC to implement these reforms have moved at a crawl."
Franken and several other Senate Democrats are making their displeasure known. In December, 15 legislators signed a letter to SEC Chair Mary Jo White asking her to finalize the rule by March 31, but that deadline has come and gone.
Corporate executives from multiple industries have pressured the SEC to delay finalizing the rule.
"This data will be useful for policymakers and academics alike as we attempt to combat wage stagnation and income inequality," said Democratic Sen. Tammy Baldwin of Wisconsin.
Independent Sen. Bernie Sanders of Vermont echoed the sentiment: "At a time of massive wealth and income inequality, and when CEOs earn 270 times what their average worker makes, it is time to address the salary structure in America. Not only do we need more information, we need to end corporations counting huge CEO compensation as a cost of doing business and as a tax deduction.”