Patrick McHenryChairman

Washington, June 22, 2011 - Continuing the Financial Services Committee’s efforts to identify and fix government policies standing in the way of job creation and economic growth, the Committee today approved a bill sponsored by Rep. Nan Hayworth to help companies utilize their resources for new jobs and investment.

The Burdensome Data Collection Relief Act (H.R. 1062) repeals a costly requirement the Dodd-Frank Act placed on all publicly traded companies that diverts private sector resources away from job creation.

The Dodd-Frank Act requires publicly traded companies to disclose the median annual total compensation of all employees of the company, the annual total compensation of the CEO, and the ratio comparing those two numbers. 

Rep. Nan Hayworth said, “Stockholders and shareholders across the nation have said that this is not information that they need, it will not be material to them, and is duplicative of what is already required by law that existed before Dodd Frank. H.R. 1062  is intended to free the capital that would be used to comply with that burdensome data collection and allow it to be used to create jobs and invest in growing our economy.”

“Rep. Hayworth’s bill will lead to more jobs, and I commend her leadership on this issue.  The burdensome, costly and unnecessary government mandate we fixed today is yet another example of how Washington policies can stand in the way of job creation,” said Committee Chairman Spencer Bachus.  “Repealing this regulatory burden will enable American companies to re-direct their resources toward new jobs and investments that help them grow.”

The Financial Services Committee has received testimony on the difficulty, costs and complexity that public companies will face in meeting this government-imposed burden and how this salary information will yield little value to investors.

H.R. 1062 was approved by a vote of 33 to 21.