SACRAMENTO, CA –The California Public Employees' Retirement System (CalPERS) today issued the following statement on the SEC's announcement that it will begin rule-making for the disclosure of CEO pay ratios, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
"CalPERS welcomes today's announcement from the SEC that it will start rule-making on new disclosures on pay ratios as required by Dodd-Frank," said Anne Stausboll, CalPERS Chief Executive Officer.
"CalPERS believes that long-term value creation requires the effective management of human capital. The SEC rule will require companies to disclose the median pay of their employees and show the ratio to the CEO's total pay. This further opens the window on CEO pay and will help shareholders to keep management accountable.
"The Dodd-Frank requirement that the SEC issue a disclosure rule requiring public companies to disclose the ratio of compensation of its CEO, to the median compensation of its employees, will shed light on an element of pay which is currently shrouded from view.
"Companies should welcome the new opportunity to articulate their approach to value creation through the transparency of their compensation practices across their workforce. That is good for business and good for shareholders."
CalPERS is the largest public pension fund in the U.S., with more than $265 billion in assets. We administer health and retirement benefits on behalf of 3,064 public school, local agency and State employers. Our members number more than 1.6 million in our retirement system and more than 1.3 million in our health plans. For more information about CalPERS, visit: www.calpers.ca.gov.
CalPERS Testimony: The Impact of Dodd-Frank (PDF, 318 KB)
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer