SEC Sets Review of Company Rules for Shareholder Input

Reuters reports that large pension funds and other shareholders have been able to compel company votes on a range of environmental, social and governance matters, and that companies are increasingly complaining that “voting rules have allowed special interests and proxy advisory firms that recommend how investors should vote to hijack corporate boardrooms with costly demands.”

While the SEC has listened to corporate worries, thus far it has taken no action to curtail the influence of shareholder proposals, which have become more visible in the wake of the financial crisis. An SEC spokesperson is quoted in the report saying, “It is important to regularly review whether our existing rules are achieving their objectives effectively in light of changes in our marketplace.”