H.R. 414 would repeal a provision of current law that requires a public company to disclose the ratio of the median of the annual compensation of its employees (not including the chief executive officer) to the annual compensation of its chief executive officer (or equivalent position). The bill also would nullify the rule released by the Securities and Exchange Commission (SEC) to implement that requirement.
Based on information from the SEC, CBO expects that nullifying the rule would not require any significant action by the agency; thus, CBO estimates that implementing H.R. 414 would not have a significant effect on the agency’s costs. Under current law, the SEC is authorized to collect fees to offset its annual appropriation; therefore, assuming appropriation action consistent with that authority, CBO estimates that implementing the bill would have a negligible effect on net discretionary spending. Enacting H.R. 414 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 414 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026.
H.R. 414 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.