WASHINGTON, D.C.—Benjamin Schiffrin, Better Markets’ Director of Securities Policy, issued the following statement on today’s filing of Better Markets’ comment letter to the SEC in connection with today’s roundtable on executive compensation disclosure requirements:
“Executive compensation disclosure requirements are essential because they lay bare the disparity between the pay of senior executives and the pay of regular American workers. CEO pay has risen by 1,085% since 1978 compared to 24% for typical workers’ pay. CEOs now make 290 times as much as the typical worker. And CEO pay is high even compared to other top earners, as CEOs now make over nine times as much in salary compared to even the most privileged 0.1% of workers in the economy. Given these statistics, it’s no wonder that senior executives at large corporations would rather not be subject to disclosure requirements.
“Unfortunately, it appears that they may get their wish. Chair Atkins’s statement announcing the roundtable on executive compensation disclosure requirements suggests that he believes current requirements are too onerous. But the SEC should be looking out for investors rather than the interests of corporate executives. Less disclosure about executive compensation keeps shareholders in the dark, to the benefit of executives whose pay is at issue. The SEC should want investors to have as much information as possible about the compensation of the executives who manage the companies they own.
“Chair Atkins appears focused on the costs of disclosing information about executive compensation. He does not mention the benefits of having public companies disclose their executives’ compensation to their shareholders, other investors, and the public when the median pay package for CEOs at S&P 500 companies was over $17 million in 2024, up 9.7% from 2023. Companies that pay their CEOs $17 million a year should not be heard to complain about the costs of disclosing that fact to shareholders, investors, and the public.”
The comment letter is available here.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
