ICBA backs SEC plans to rein in proxy advisors

Feb 07, 2020

ICBA expressed support for Securities and Exchange Commission proposals to strengthen rules governing proxy advisory firms and change the eligibility requirements regarding shareholder proposals for company proxy statements.

One proposal would allow a period of review on any proxy voting advice and require proxy advisory firms to disclose material conflicts of interest. In a joint letter, ICBA and other groups said the plan would improve the overall quality of proxy advice received by institutional investors.

Another proposal would raise thresholds for submitting and resubmitting shareholder proposals. In a separate joint letter, the groups said this plan would ensure shareholders do not have to repeatedly register their opposition to unpopular proposals.

ICBA previously asked the SEC to modernize its proxy rule to prevent shareholder activists from resubmitting proposals without broad shareholder support. It continues to support legislation that would require proxy advisory firms to register with the SEC and disclose conflicts of interest.

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