For the second time in a week, acting SEC Chair Michael Piwowar has asked the SEC staff to reconsider implementation of a controversial provision of the Dodd-Frank Act.
Last week it was the conflict minerals rule. This week it’s the pay ratio rule’s turn.
The latter, adopted by a divided SEC in August 2015, requires companies to disclose the ratio of their chief executive's annual pay to the median annual pay of their employees.
Piwowar was one of two Republican SEC members to vote against the rule. In Piwowar’s dissent on the rule’s implementation, he criticized the pay ratio rule as being violative of the Administrative Procedures Act, a major source of challenge for SEC regulations.
In his Feb. 6 statement, Piwowar reopened the rule for comment, to be submitted within the next 45 days, and has asked SEC staff to “reconsider the implementation of the rule based on any comments submitted and to determine as promptly as possible whether additional guidance or relief may be appropriate.”
With the implementation to the rule having been previously delayed by the commission until companies’ first fiscal year on or after Jan. 1, 2017, most companies won’t have to disclose until their 2018 proxy statements.
According to Piwowar, however, “Issuers are now actively engaged in the implementation and testing of systems and controls designed to collect and process the information necessary for compliance. However, it is my understanding that some issuers have begun to encounter unanticipated compliance difficulties that may hinder them in meeting the reporting deadline.”
Time will tell what happens to two of the most controversial provisions in Dodd-Frank.
A third, the resource extraction disclosure rule, was revoked last week by both the House and Senate under the Congressional Review Act (CRA). The final step—the president’s signature—still awaits. While the CRA action negates the SEC rule, it doesn’t strip away the Dodd-Frank Act provision mandating the regulation. This means the SEC is still technically required to craft the measure, even though a Republican-led commission is unlikely to act and Republican lawmakers are seeking to repeal that part of Dodd-Frank.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)