Release Date: Jan 17, 2006Contact: 888-249-NEWS
Chamber Supports Transparency in Reporting Executive Compensation
Washington, D.C.—U.S. Chamber President and CEO Thomas J. Donohue released the following statement on the SEC's proposed executive compensation disclosure rule:
"The Chamber strongly supports transparency in reporting executive compensation and we look forward to carefully reviewing the SEC's proposal. We will support this rule if it meets the following principles: it provides investors a clearer and more useful understanding of executive compensation; it is simple, fair, and does not impose undue compliance burdens on companies; and it continues to allow market forces to determine executive compensation.
"We will oppose any parts of this rule that constitute a back-door attempt to regulate pay. There are relatively few who can successfully manage the CEO job, and those who do must be paid a competitive salary as determined by the independent directors of the Compensation Committee of a company's Board.
"We are skeptical that any system could come up with a single number that is directly comparable for all executives, but we will review this rule with an open mind. We will pay particular attention to any unintended consequences of the rule that would harm investors, discourage service as a CEO, or interfere with the efficient functioning of our markets."
The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region.
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