12 Apr Filling SEC Commissioner Spots Gets Political

According to the Associated Press and others, the process of filling the two open SEC Commissioner positions is being held up primarily because of the nominees’ views on whether public companies should disclose their political spending. Key Senators have asked both Lisa Fairfax, the nominee for the Democratic seat, and Hester Pierce, tapped for the Republican spot, their views on the subject. Both, according to AP, have “waffled” on the issue. Senators want them clearly on the record, and ideally supporting disclosure of corporate political donations.

Put aside that the latest budget bill actually prevents the SEC from spending any money to finalize a rule on political spending disclosure, the Senate wants to understand the nominees’ views on the question. Hey how about we compromise and say political contributions only have to be disclosed if they exceed 1% of a company’s net profit? The issue of materiality seems to be a key element of the debate on the subject. Regular blogees know, however, that I’m not a fan of political or social causes being enmeshed with disclosure for investors about a company’s performance.

As the battle over filling Justice Antonin Scalia’s seat on the Supreme Court reminds us of those with litmus tests for eligibility, this one, in the scheme of things, does not seem lofty enough to hold up the SEC’s work. With only 3 Commissioners and each having an effective blocking vote on anything for parliamentary reasons, it seems like less will get done than should. Either let’s ask for other nominees or let’s get these two through please.