Protecting the Rich and Powerful

This morning, I read on Salon's website an article titled "The Rich Aren't Like You and Me," by Michael Winship. Winship describes how the rich are getting richer and richer and the poor, poorer and poorer. CEO pay and compensation continues to grow while workers' salaries stagnate. Of 438 companies analyzed:

[a]t 158 of the companies, more was paid to those in charge than was shelled out for outside audit fees. And 32 of them paid more in top salaries than they paid in corporate income taxes. The pay of 2591 executives was up 13.9 percent in 2010. Total, before taxes: $14.3 billion, almost equal to the GDP of Tajikistan, population: more than seven million.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (See also, here) was passed in 2010, in response to the financial crisis, but interested parties have been chipping away at its regulatory power. One of the requirements of the Dodd-Frank would have made transparent the difference between CEO compensation and worker compensation of publicly traded companies: "The Dodd-Frank Act requires publicly traded companies to disclose the median annual total compensation of all employees of the company, the annual total compensation of the CEO, and the ratio comparing those two numbers."

Some folks, however, think that gathering this information is just "too burdensome" for companies and that the money spent gathering that information would best be spent on hiring workers. (Really, how difficult would it be for a company to publish that information in its annual report?) So Rep. Nan Hayworth (R-NY) has sponsored a bill--which has passed in the Committee on Financial Services--to do away with this "burdensome" requirement. Companies, of course, have a vested interest in not making this kind of information easily available to the public--and their own workers. Nan Hayworth also has a vested interest. As Michael Winship points out, Nan Hayworth's official biography

cites 'reducing regulatory burdens on businesses' as one of her top priorities. Among her leading 2010 campaign contributors: leveraged buyout specialists Vestar Capital Partners, distressed debt investors Elliott Management and financial services giant Credit Suisse. Not to mention the anti-taxation Club for Growth.

Businesses, of course, are making profits once again in our stressed economy; workers, however, are not seeing their pay rise accordingly.

So I was curious to see who co-sponsored this bill to lift such a "burdensome" requirement, as outlined in H.R. 1062: Burdensome Data Collection Relief Act. Here are the names: Judy Biggert (R-IL), Francisco Canseco (R-TX), Bob Dold (R-IL), Scott Garrett (R-NJ), Michael Grimm (R-NY), Peter King (R-NY), Bill Posey (R-FL).

As Peter Whoriskey reports in his article in the Washington Post, "Business Group: Public Companies Shouldn't have to Compare CEO and Worker Pay":

The committee vote was largely along partisan lines: Twenty-nine Republicans and four Democrats supported repeal; 21 Democrats opposed it.

As income disparity grows in this country, it's interesting to see just who forms alliances to hide that disparity and to protect the rich.

And so it goes.

Additional information:
members of the Committee on Financial Services

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