From: Chris Gorsuch
SEC Chairman Christopher Cox
Dear [ SEC Commissioners ],
I am writing to urge the Securities and Exchange Commission to act on its proposed rule making on executive compensation disclosure. Without better disclosure, shareholders, employees and the general public cannot evaluate whether executive pay packages are unjustly enriching executives at shareholder cost or providing fair compensation.
The newly proposed rules will make this crucial information more accessible to shareholders and the public. The new requirements to disclose total compensation figures, pensions and detailed compensation breakdowns will make it clear exactly how much top executives are earning and why.
I believe that CEO pay should be set by independent directors.
I also urge the SEC to require that companies disclose pay-for-performance data. In order for investors to understand how pay and performance match up, companies need to explain more clearly what level of performance is necessary for a particular level of pay. I urge the SEC to require companies to disclose both the performance criteria and the performance targets they use when setting executive pay.
If I performed as badly as some of these executives performed, I would be terminated. There is a great deal of whining going on in corporate circles about the costs of labor, but they clam up 1000% when it comes to their own compensation. If the rewards are great, so should the consequences.
Thank you for your past support of worker issues; I hope we can count on you for this one as well.