WASHINGTON DC – Tom Quaadman, executive vice president of the U.S. Chamber’s Center for Capital Markets Competitiveness, today issued the following statement regarding the Securities and Exchange Commission’s proposal to finalize its cancellation of securities firm regulations. proxy advisor and to propose changes to the rules governing exceptions to shareholder proposals.
“The SEC votes today will significantly weaken investor protections and corporate governance, while turning a blind eye to conflicts of interest. By altering a regulation previously finalized before it was allowed to go into effect and undermining the spirit of another, the SEC is pursuing a politically motivated agenda that endangers the competitiveness of our public capital markets. The proxy advisor rule finalized in 2020 is rooted in deliberations that spanned a decade and multiple jurisdictions and led to regulations that created a level playing field while ensuring investors would have access to high-quality information. , without bias. Similarly, the 2020 Shareholder Proposal Rule updated a 1950s rule with modest but significant protection for investors by balancing the interests of shareholder democracy and helping companies stay focused on performance at long term of the business.
“Today’s actions undermine the regulatory progress the SEC has made in recent years to encourage companies to go public and stay public – companies that ultimately create more opportunity for main street investors and everyday Americans. and contribute to the growth of our economy.The House will consider all available options, including the courts, to stop these unwarranted and clearly political rollbacks.
The 2020 Proxy Advisor Rule was enacted after a decade of deliberations at the SEC on how to root out and eliminate misinformation and conflicts of interest in the proxy process so that investors have access to high-quality information. unbiased quality. Today’s actions eviscerate the transparency and accountability measures of the 2020 rule for proxy advisory firms, putting investors and markets at risk. The Board can and should observe a better regulatory process. Learn more.
The 2020 shareholder proposal rule slightly raised thresholds for shareholder proposals for the first time since the Eisenhower administration, helping companies stay focused on long-term shareholder returns. Today’s proposed changes to Rule 14a-8 would further incentivize special-interest activists who seek to turn boardrooms and shareholder meetings into political debate societies, thereby undermining the long-term performance of the company. Learn more.