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New SEC Rule Will Expose Whether CEO-to-Worker Pay Ratio Is Out of Balance

AFL-CIO President Richard Trumka made the following statement after the SEC finalized the CEO-to-Worker-Pay Ratio Rule today:

We are pleased that the SEC took action and recognized the difficult task the commission undertook as it came under numerous attacks by corporate interests. The rule will provide important information about companies’ compensation strategies and allow shareholders to determine whether CEO pay is out of balance in comparison to what a company pays its workers. We believe investors deserve transparency.

We hope this rule will help investors make sound decisions when they vote on executive compensation packages. However, we are concerned that it contains weaknesses that could be exploited to allow companies to avoid reporting the median income of all workers. The Dodd-Frank Act was meant to protect investors and ensure that our economy works for all. We hope the SEC moves quickly to finalize the outstanding regulations mandated by Congress under Dodd-Frank.

Contact: Carolyn Bobb (202) 637-5018

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