(Falls Church, Virginia, 3/22/17) — Azzad Asset Management has joined other faith-based organizations in signing a letter to the United States Securities and Exchange Commission (SEC) calling for the continuation of a rule requiring companies to disclose how much CEOs make compared to their employees.
The pay ratio provision is part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act; it requires publicly traded companies to disclose median employee compensation along with a ratio of how that compares to the chief executive’s pay–information that was previously inaccessible to shareholders.
In February, acting SEC Chair Michael Piwowar announced that the SEC would reconsider implementation of the rule and requested public comment.
Organized by Praxis and Christian Brothers Investment Services, the letter was signed by nine faith-based investment firms and delivered to the SEC on March 21. It states, in part:
“We are aware that income inequality may be an inevitable outcome of the freedom of opportunity for which the United States is deservedly renowned. Our argument, however, is that in a democratic society, there should be full disclosure, awareness and discussion about what our existing levels of inequality are, whether this state of affairs is acceptable, and if it is not, how we individually and collectively should respond to it. Corporate disclosure of the CEO/pay ratio can play a key role in this process.”
“Inequality is a societal problem addressed by all ethical traditions,” said Azzad President and CEO Bashar Qasem. “Islamic teachings decry the hoarding of wealth, which prevents the circulation of capital and its contribution to the real economy. To the extent that the pay ratio disclosure rule helps to counter inequality through transparency it is imperative that all people of conscience endorse its objectives.”
About Azzad Asset Management
Azzad Asset Management, investment advisor to the Azzad Funds and sponsor of the Azzad Ethical Wrap Program, is committed to providing investment services designed to help people enjoy optimum performance without compromising their values. Azzad is a member of the Forum for Sustainable and Responsible Investment, the Interfaith Center on Corporate Responsibility, and the Accounting and Auditing Organization for Islamic Financial Institutions. The firm, based outside Washington, D.C., is a registered investment advisor.
About Praxis Mutual Funds
Praxis Mutual Funds is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with their values. Praxis is the mutual fund family of Everence Financial, a comprehensive faith-based financial services organization helping individuals, organizations and congregations.
About Christian Brothers Investment Services
CBIS is a global investment management firm that has been a trusted partner for Catholic institutions and their consultants worldwide for over 35 years. Specializing in Catholic Responsible Investing℠ (CRI), a distinct investment approach that combines research-driven stock screening with active ownership, CBIS helps Catholic organizations align their investments with Catholic beliefs. CBIS is a Registered Investment Advisor owned by the De La Salle Christian Brothers in the United States and the Center of the Institute in Rome.
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Contact: Investment Communications Director Joshua Brockwell, 703-207-7005, ext. 109, joshua@azzad.net; Amina Rubin, 703-207-7005, ext. 120, amina@azzad.net
Please consider a Fund’s objectives, risks, charges and expenses carefully before you invest. The summary prospectus and prospectus contain this and other important information. For a hard copy, please call 1-888-350-3369. Read the prospectus carefully before investing or sending money. The Azzad Funds are self-distributed. Azzad Asset Management serves as investment advisor.
