Oregon treasurer presses for CEO transparency
Oregon Treasurer Tobias Read joined with other investment industry leaders last week and urged the U.S. Securities and Exchange Commission to stay the course on corporate transparency, a key tenet in consumer protections passed to protect the economy from a repeat of the crippling Global Financial Crisis of 2008-09.
At stake is the “Pay Ratio Rule,” which requires disclosure by corporations of how chief executive compensation compares to median wages of company employees.
Read, representing the Oregon State Treasury, was among 100 signers of a letter asking the SEC acting director to not back away from the Pay Ratio rule, which is scheduled to go into effect this year. A reversal would have the concerning impact of chipping away at the landmark Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Treasurer said.
Those signing the letter – available here – represent both private- and public-sector entities that collectively manage assets totaling more than $3 trillion. Other notable supporters include public funds in Connecticut, California, Illinois and New York and religious-based investing organizations nationwide.
“The long-term success of Oregon Treasury-managed investments relies on stable and well-regulated financial markets,” said Read, who is the custodian of state funds and also a member of the Oregon Investment Council. “Transparency, accountability and consumer protections are critical because the last thing we can afford is a repeat of the Great Recession.”
As of Dec. 31, the Oregon Treasury managed a portfolio worth $92.5 billion, which included the Oregon Public Employees Retirement Fund, which stood at $70.5 billion. Roughly 73 cents of every dollar of contractual Oregon PERS benefits come from investment returns.
Investment and management beliefs adopted by the Oregon Investment Council note that transparent financial markets are essential for long-term investment success.
The Oregon State Treasury protects public assets, saves money, and helps Oregonians to invest in themselves and their families through empowerment programs like the Oregon 529 Savings Network and OregonSaves. Treasury oversees public investment, banking, and debt management services. State investment policies are set by the Oregon Investment Council. Treasury also promotes public outreach and education to help Oregonians learn strategies to save money and make smart financial choices.
