July 9, 2013
As ordered reported by the House Committee on Financial Services on June 19, 2013
H.R. 1135 would repeal a requirement that issuers of certain securities include information about employee compensation in disclosures made to the Securities and Exchange Commission (SEC). Under current law, issuers must disclose the relationship between executive compensation paid and the financial performance of the issuer as well as a comparison of the median total compensation of the issuer’s employees, exclusive of the chief executive officer’s (CEO) compensation, with the total annual compensation of that CEO. Under the bill, that information would no longer be reported to the SEC.
Based on information from the SEC, CBO expects that incorporating the provisions of H.R. 1135 at this point in the regulatory process would not require a significant change in the workload of any agency. Hence, CBO estimates that any change in discretionary spending by the SEC to implement the legislation would not be significant. Further, the SEC is authorized to collect fees sufficient to offset its appropriation each year; therefore, we estimate that the net budgetary effect of implementing H.R. 1135 would be negligible. Enacting H.R. 1135 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 1135 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.