SEC To Require Companies Disclose Gap Between Executive & Median Pay
August 05, 2015
The SEC is set to approve a new rule requiring companies to disclose the pay gap between rank-and-file employees (median worker pay) and the chief executive.
• The SEC is set to approve a new rule requiring companies to disclose the pay gap between rank-and-file employees (median worker pay) and the chief executive. It will allow companies to exclude only 5% of their overseas workers from the pay-ratio calculation. Companies had argued that the SEC should allow them to exclude a much larger percentage of foreign workers, an approach that would have likely narrowed the reported pay gap at some multinational firms. Supporters of the pay-ratio rule say that the new disclosure requirement could pressure corporate boards at firms with large pay gaps to rein in CEO raises. The SEC is expected to vote on the measure Wednesday. [WSJ]
• The Senate unanimously approved the U.S. Commercial Space Launch Competitiveness Act, which proposes to extend the operations of the International Space Station through 2024 and would enact a number of provisions designed to bolster the private space industry. Among them is the extension of a Department of Transportation regulatory moratorium on commercial space activity through 2020, as it was originally set to expire at the end of September. It also asks the administration to work to examine ways to regulate the industry that “prioritize safety, utilize existing authorities, minimize burdens, promote the U.S. commercial space sector, and meet the United States obligations under international treaties.” [The Hill]
Economic Indicators & News
• The U.S. trade gap expanded 7% to $43.8 billion in June. The strong dollar is pushing down demand for American-made goods overseas, while giving foreign manufacturers an edge in the U.S., creating another hurdle for the U.S. economy. Exports are down nearly 3% year-on-year. On the other hand, the rise in imports hints at the relative health of American consumers, who increased purchases of foreign items, notably automobiles. [WSJ]