Sharply divided SEC issues CEO pay ratio rule proposal

WASHINGTON Wed Sep 18, 2013 11:36am EDT

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WASHINGTON (Reuters) - U.S. securities regulators on Wednesday voted to propose a long-awaited new rule that would require companies to disclose how their chief executives' compensation compares with that of all company employees.

Under the Securities and Exchange Commission's plan, released for public comment in a 3-2 vote, companies would need to disclose the median of the annual total compensation for their employees and the ratio of that median to the annual pay of the CEO.

The SEC's five commissioners were divided on whether to propose the plan, with Republican Commissioners Michael Piwowar and Daniel Gallagher criticizing the measure as nothing more than a special interest provision that would not help investors.

(Reporting by Sarah N. Lynch; Editing by Gerald E. McCormick)

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