SEC Proxy Rule Changes Called 'Political Football'
Agenda
Agenda
Dave Lynn spoke to Agenda about the Securities and Exchange Commission's updates to the shareholder proposal rule that would result in more proposals ending up on proxy ballots in the near future, and would make it more difficult for companies to get no-action relief if they decide to exclude proposals from proxies.
"Obviously we never got to see if the 2020 rules would have been progress on the issues because they never came into effect," Dave said. "The rules were rescinded because of pushback from the proxy advisory firms that were subject to the rules and some institutional investors and investor groups. The whole topic can aptly be described as political football."
He added: "Boards and companies will need to continue to be vigilant about understanding the role the proxy advisory firms play in the system and should consider their reaction to matters when making important governance and business decisions."
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Practices