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BREAKING: SEC Stifles Shareholder Voice
The SEC today voted along partisan lines to insulate management from accountability to investors, workers, communities & others.
Raising ownership requirements to offer sh/h proposals from $2k to $25k means only rich & powerful get a say. https://twitter.com/SECHerrenLee/status/1308797844820824064
The SEC today voted along partisan lines to insulate management from accountability to investors, workers, communities & others.
Raising ownership requirements to offer sh/h proposals from $2k to $25k means only rich & powerful get a say. https://twitter.com/SECHerrenLee/status/1308797844820824064
Sadly, corporate America doesn't believe that its vision for a new broader corporate purpose ought to be accountable to anyone.
Powerful dissent by new SEC Commr. Caroline Crenshaw here.
https://www.sec.gov/news/public-statement/crenshaw-14a8-2020-09-23-0
Strong statement by @SECHerrenLee quoted above.
Powerful dissent by new SEC Commr. Caroline Crenshaw here.
https://www.sec.gov/news/public-statement/crenshaw-14a8-2020-09-23-0
Strong statement by @SECHerrenLee quoted above.
Via shareholder proposals, investors can seek a sh/h vote on particular corporate matters. They have proven to be cutting edge tools on risk management, governance, and long-term alignment between companies, the economy, and society.
They have played key roles in advancing independent directors, addressing race gender and LGBT inclusivity, tackling climate change, and providing what modest political spending transparency exists. Much more.
As Commr. Crenshaw smartly points out, for the average working family (and 50% of Americans don't own any stock), $25,000 in one company is a hazardous level of concentration.
SEC's final rules today actually run CONTRARY to basic principles of investor protection.
Shame.
SEC's final rules today actually run CONTRARY to basic principles of investor protection.
Shame.
Ultimately, SEC has provided a pure giveaway to "make life easier" on corporate management.
I mean, what bank exec wants pesky shareholders seeking votes on separating board chair from CEO when the bank has racked up a record series of legal violations and fines?
I mean, what bank exec wants pesky shareholders seeking votes on separating board chair from CEO when the bank has racked up a record series of legal violations and fines?
For more on why shareholder proposals matter to investors, corporate long-termism and the public interest in a robust economy, a diverse and inclusive society, and a healthy planet, check out this @amprog report: https://www.americanprogress.org/issues/economy/reports/2018/10/02/458891/corporate-long-termism-transparency-public-interest/
And check out what happens when companies aren't accountable to workers:
- Booming CEO pay
- Booming M&A
- Booming stock buybacks
- Stagnant worker pay https://www.americanprogress.org/issues/economy/reports/2019/08/14/473095/corporate-governance-workers/
- Booming CEO pay
- Booming M&A
- Booming stock buybacks
- Stagnant worker pay https://www.americanprogress.org/issues/economy/reports/2019/08/14/473095/corporate-governance-workers/
