The House Financial Services Committee approved the Center-supported Burdensome Data Collection Relief Act, H.R. 414, which would repeal the Dodd-Frank pay ratio in its entirety, marking the third consecutive session of Congress which the Committee has approved repeal and sent it to the full House of Representatives.
The Center's Comments make a strong case that a final rule should provide sufficient discretion to allow company boards to always act in a manner which fulfills their fiduciary duties to the company and its shareholders.
Despite the articles lauding the "insight" that the pay ratio disclosures will bring in 2018, this week ISS and a UK Shareholder group expressed doubts about the pay ratio's ability to provide useful information in a Bloomberg article examining how investors may use the disclosure.
Since 2010 there have been only 15 pay ratio related shareholder proposals. These proposals have averaged over 93% shareholder opposition with no single proposal receiving over 10% support.
In 2010, the Securities and Exchange Commission issued a Concept Release on the U.S. Proxy Plumbing System which included an discussion on the conflicts of interest inherent in the proxy advisory firm industry.