Congress to SEC: Scrap Pay for Performance (With Bonus Tariffs)
The House Committee on Financial Services made headlines this week with a series of letters to various agencies requesting a slew of Biden administration actions be scrapped or substantially revised.
What they’re saying: In its SEC letter, the Committee called for a laundry list of rules to be revoked, including the controversial 2022 pay versus performance rules that were part of the Dodd-Frank Act.
You may recall that pay ratio was included on the chopping block in Project 2025, but pay for performance was not. This may reflect greater confidence in the ability to withdraw more recent rules (vs. pay ratio which was finalized in 2015).
The Center is deeply engaged with the SEC on the possibility of revising the existing Dodd-Frank pay versus performance rule and have urged the Commission to consider a principles-based approach.
Meanwhile, Liberation Day has come and gone, leaving an expansive array of tariffs in its wake. As this Corporate Counsel blog points out, the new tariffs will almost certainly escalate ongoing international tensions, with volatile effects on the market and companies. Key questions raised:
How will tariffs impact our prices, cost of goods in production, or availability of supply chain?
How will tariffs impact demand, either directly or due to general inflation?
How can we mitigate business impact that can’t be recovered?
How will the workforce be impacted (i.e., restructuring)?
Stay tuned: The Center will be circulating an updated survey on the impact of tariffs to your business and incentive plans soon. Please participate so that everyone can benefit from the latest data. Find results from our February survey here.
Ani Huang
Senior Executive Vice President, Chief Content Officer, HR Policy Association
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