Statement for the Record for Hearing on Corporate Governance

July 18, 2017

Statement for the record from Business Roundtable submitted to the Subcommittee on Capital Markets, Securities, and Investment, Committee on Financial Services, for the hearing on, "The Cost of Being a Public Company in Light of Sarbanes-Oxley and the Federalization of Corporate Governance."

Thank you, Chairman Huizenga, Ranking Member Maloney and members of the Committee, for the opportunity to offer the views of America’s business leaders on the important topics you are examining today. 

Business Roundtable is an association of chief executive officers of leading U.S. companies. Our member companies employ nearly 15 million U.S. employees and produce more than $6 trillion in annual revenues. The combined market capitalization of Business Roundtable member companies is the equivalent of nearly one-quarter of total U.S. stock market capitalization, and they annually pay over $220 billion in dividends to shareholders, generate more than $400 billion in sales for small and medium-sized businesses and invest over $100 billion in research and development.  

We are grateful for the opportunity to provide our perspective on the federal regulatory environment that governs U.S. capital markets and affects the ability of U.S. public companies to invest, hire and expand. 

America’s business leaders have long called for a smarter, more effective approach to financial regulation that focuses on limiting systemic economic risk while continuing to enable U.S. businesses to innovate and grow. We thank the Subcommittee for exercising its oversight authority to review the current state of financial regulation.