Sunday, May 08, 2011

House Panel Approves Legislation Repealing Corporate Governance Provision of Dodd-Frank

The House Capital Markets Subcommittee approved legislation repealing Section 953(b) of Dodd-Frank. The Burdensome Data Collection Relief Act,HR 1610, introduced by Representative Nan Hayworth, removes a provision in Dodd-Frank that would require publicly traded companies to disclose their median annual total compensation of all employees. Two months after the Dodd-Frank Act was signed into law, the Financial Services Committee received testimony about the enormous burden and complexity this provision poses to publicly traded companies, with very little, if any, corresponding benefit to investors. The legislation was approved by a bi-partisn vote of 20 to 12.