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Sept. 29, 2015, WASHINGTON, D.C. — Cara Woodson Welch, vice president of external affairs and practice leadership for WorldatWork, a nonprofit human resources association and compensation authority issued the following statement today encouraging House Financial Services Committee members to pass H.R. 414 the Burdensome Data Collection Relief Act which repeals the recently finalized U.S. Securities and Exchange Commission's (SEC) rules implementing the CEO pay-ratio requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank):
"Advancing this legislation and relieving companies from the disclosure requirements which have now been finalized by the SEC is sorely needed."
"Now that the rules are final, compensation and executive compensation practitioners are faced with the daunting task of trying to identify their median employee in order to comply with the CEO pay-ratio rules. This process will be extraordinarily expensive, time consuming and burdensome for companies and will fail to result in any meaningful benefit for shareholders and potential investors. Once published, the ratio itself will require significant explanation to truly understand and it's unlikely that shareholders, potential investors, members of the public or the media will take the time necessary to fully comprehend the methodology used by each company to reach their median employee calculation."
"The best solution for avoiding this ill-conceived requirement is full repeal. WorldatWork strongly supports H.R. 414 and respectfully asks members of the committee to pass this legislation and move it forward to the full House for consideration."
WorldatWork submitted formal comments in 2013 and on July 6, to the SEC on the agency's proposed regulations implementing the CEO pay-ratio requirement of Dodd-Frank. View WorldatWork's 2013 and 2015 full comment letters.
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