The Chairman of the SEC recently announced, an all encompassing review
of the proxy process via a “Round Table Review.”
Topics that may be considered include:
I. The potential for over-voting and under-voting by broker dealers:
Retail Shareholder Participation (why retail shareholders voted 29% of their shares; vs. 91% voted by Institutional Investors).
Shareholder Proposal Process
Thresholds for minimum ownership.
II. Proxy Advisory firms:
Reliance on these Firms;
Opportunity to raise concerns by issuers if they disagree;
The transparency of the Proxy firm process;
Conflict of interest with related consulting services provided.
III. Technology Review:
Can it help make the proxy process more efficient?
A look at “Block Chain” and possible benefits.
The SEC will welcome comments via its website, email@example.com., or by paper comments addressed to Bret J. Fields, Secretary, Securities Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090.
The outcome of the review will certainly be interesting.
Ref: Statement Announcing SEC Staff Roundtable Review
Chairman Jay Clayton, July 30, 2018