Uyeda and Peirce targeted two rules in particular: the pay-versus-performance rule, which requires public companies to disclose the relationship between executive compensation and a company’s financial performance, and the pay ratio rule, requiring that companies disclose the ratio of a CEO’s compensation to the median compensation of other employees. Regarding the pay-versus-performance rule, Peirce said feedback indicates it is seen as a regulatory “tax” on public companies without a corresponding benefit for investors.
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