Guiding Uniform and Responsible Disclosure Requirements and Information Limits Act of 2023

Floor Speech

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Mr. CASTEN. Mr. Speaker, I rise today as a former CEO who would have personally benefited from this legislation. I rise in strong, dare I say, vehement, opposition to this legislation.

Let me be very clear. The job of a CEO, especially in capital- intensive businesses like the one I used to run, is to be a prudent and responsible steward of other people's capital.

I should also be candid and say that sometimes investors can be a pain in the butt. When you are the CEO, you are managing their money. They may call you, and they may ask questions about wanting to dig into the details of your hiring policies. They may want to dig into the details of your internal governance policies. They may want to understand the degree to which your company is hedged out against future risks, ESG or otherwise.

It is very tempting in those moments, from my personal experience as a CEO, to say: ``You all don't understand this business as well as I do. I am so much smarter than you. I am going to ignore your questions because they are not material,'' and hang up the phone.

That is a great way to become an ex-CEO, which is exactly as it should be. When you tell them that they don't understand what I know about my company, they are inclined to correct you and say: ``No. It is not your company. It is my company.''

My Republican colleagues are doing exactly that with this bill. They are telling investors and shareholders that they do not have a right to decide what is material in their interest in these companies. Maybe that is an individual investor. Maybe that is a pension fund. They are saying that they don't matter.

Mr. Speaker, let me tell you, our Nation's CEOs thank my Republican colleagues for their service, for looking out for them.

Now, we will always have a few lousy, self-interested CEOs who would like to fleece their investors, who would like to hide their liabilities, who would like to tell you to shut up and pound sand because you don't understand their business.

It is sad to me to see the Republican Party choose to associate with them and say we have their backs. I am proud to stand with our Nation's good CEOs and, more importantly, with all of our Nation's investors in strong opposition to this antimarket, antigrowth legislation.

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Mr. CASTEN. Mr. Speaker, again, I oppose H.R. 4790 because it impedes shareholders' engagement with the companies they own, limits visibility into corporate decisionmaking, and ultimately weakens the foundation of America's strong free market.

For this reason, at the appropriate time, I will offer a motion to recommit this bill back to committee. If the House rules had permitted, I would have offered this motion with an important amendment to this bill.

My amendment would require companies to disclose when they abandon commitments to diversity, equity and inclusion, or DEI.

DEI initiatives at companies lead to more innovative and productive organizational cultures. Establishing a diverse workforce helps companies attract and retain top talent and ultimately drives better business outcomes.

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Mr. CASTEN. Mr. Speaker, I have a motion to recommit at the desk.

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