Greater Accountability in Pay Act

IB Union Calendar No. 267 116TH CONGRESS 1ST SESSION H. R. 4242 [Report No. 116–336] To amend the Securities Exchange Act of 1934 to require issuers to disclose information on pay raises made to executives and non-executive employ- ees, and for other purposes. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 6, 2019 Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Committee on Financial Services DECEMBER 11, 2019 Additional sponsor: Mr. SHERMAN DECEMBER 11, 2019 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on September 6, 2019] VerDate Sep 11 2014 23:55 Dec 11, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H4242.RH H4242 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4242 RH A BILL To amend the Securities Exchange Act of 1934 to require issuers to disclose information on pay raises made to executives and non-executive employees, and for other purposes. VerDate Sep 11 2014 23:55 Dec 11, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H4242.RH H4242 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4242 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Greater Accountability 4 in Pay Act’’. 5 SEC. 2. PAY RAISE DISCLOSURES. 6 Section 13 of the Securities Exchange Act of 1934 (15 7 U.S.C. 78m) is amended by adding at the end the following: 8 ‘‘(s) PAY RAISE DISCLOSURES.—An issuer required to 9 file an annual report under this section or section 15(d), 10 that is not an emerging growth company, shall include in 11 such report— 12 ‘‘(1) the percentage increase in the median of the 13 annual total compensation of all executive officers (as 14 such term is defined in section 240.3b–7 of title 17, 15 Code of Federal Regulations) of the issuer over the 16 last completed fiscal year; 17 ‘‘(2) the percentage increase in the median of the 18 annual total compensation of all employees of the 19 issuer, excluding executive officers, over the last com- 20 pleted fiscal year; 21 ‘‘(3) the ratio of the percentage described in 22 paragraph (1) to the percentage described in para- 23 graph (2); 24 VerDate Sep 11 2014 23:55 Dec 11, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H4242.RH H4242 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4242 RH ‘‘(4) a comparison of the percentage described in 1 paragraph (1) to the percentage change over the same 2 period in the Consumer Price Index for All Urban 3 Consumers published by the Bureau of Labor Statis- 4 tics of the Department of Labor; and 5 ‘‘(5) a comparison of the percentage described in 6 paragraph (2) to the percentage change over the same 7 period in the Consumer Price Index for All Urban 8 Consumers published by the Bureau of Labor Statis- 9 tics of the Department of Labor.’’. 10 VerDate Sep 11 2014 23:55 Dec 11, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H4242.RH H4242 pamtmann on DSKBC07HB2PROD with BILLS VerDate Sep 11 2014 23:55 Dec 11, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H4242.RH H4242 pamtmann on DSKBC07HB2PROD with BILLS Union Calendar No. 267 116TH CONGRESS 1ST SESSION H. R. 4242 [Report No. 116–336] A BILL To amend the Securities Exchange Act of 1934 to require issuers to disclose information on pay raises made to executives and non-executive em- ployees, and for other purposes. DECEMBER 11, 2019 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 23:55 Dec 11, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6651 Sfmt 6651 E:\BILLS\H4242.RH H4242 pamtmann on DSKBC07HB2PROD with BILLS