May 17, 2019
The House Financial Services Capital Markets Subcommittee unveiled during a hearing a set of draft partisan disclosure bills designed to deliver clear messages, including a mandated disclosure of employee outsourcing, human capital management, buybacks, and a “pay raise ratio.”
Four bills, four distinct issues:
Application to both private and public companies: Rep. Brad Sherman (D-CA) called for the application of every bill introduced to all companies, private and public, with revenues exceeding $100M or more. “We’re not the SEC where our powers are limited to public companies,” he noted.
Call to strengthen pay ratio: Filmmaker Abigail Disney, who earned ovations after her remarks, urged adoption of all the bills, calling worker pay disparity a moral issue. Dr. Disney also called for one change to the pay raise ratio act suggesting it should require disclosure of CEO pay to the lowest paid employee.
Outlook: While the highly partisan nature of the bills effectively kills the chance of any of them becoming law, the concepts endorsed in them demonstrate the policy stance of many House Democrats and could include issues that will be injected in the 2020 presidential campaigns.