WASHINGTON, Jan 28 — Public companies in the United States would be required to disclose how the pay of their top executives squares with their overall performance under a Securities and Exchange Commission rule proposed on Thursday.
Wednesday’s rule, which must first receive public consultation before it can take effect, also asks whether companies should spell out whether pretax net income and net income would be useful additional financial metrics. The move also comes amid a push by President Joe Biden’s administration to force listed companies to review working conditions, pay equity, hiring and retention policies.
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