Business Roundtable is an association of chief executive officers of leading U.S. companies working to promote a thriving economy and expanded opportunity for all Americans through sound public policy.
U.S. corporations employ millions of American workers, create opportunity for employees and shareholders, drive innovation, improve the lives of consumers, and provide health care and other benefits to American families. The way corporations are governed directly affects the well-being of employees, shareholders and consumers.
Business Roundtable advocates for corporate governance policies that help create long-term value, advance the economic interests of workers, shareholders and consumers, and uphold the highest ethical standards.
Recent Activities in Corporate Governance
Business Roundtable appreciates the opportunity to comment on the Securities and Exchange Commission’s (the “Commission” or “SEC”) proposed rule—FAST Act Modernization and Simplification of Regulation S-K (the “Proposed Rule”).
On behalf of the CEO members of Business Roundtable, we appreciate the opportunity to provide our comments on the Core Principles for Regulating the U.S. Financial System outlined in Executive Order 13772.
We believe constructive shareholder engagement is vital to the successful operation of public companies. The importance of this relationship drives the need for a shareholder proposal process that is robust, productive and oriented toward long-term value creation for all shareholders. That is not the case today.
Business Roundtable believes the CEO pay ratio rule should be changed to exclude employees located outside of the United States in determining the median employee. Doing so would create a more consistent common denominator in the many variables that exist in formulating the ratio. In addition, BRT suggests that non-full time employees be exempt from the rule to provide some protection against distorted results.