Statements From Public Citizen Experts
Note: Today, the U.S. Securities and Exchange Commission (SEC) proposed new restrictions on shareholders who submit resolutions to companies where they’ve invested, raising the ownership and resubmission thresholds. Commissioners Robert Jackson and Allison Lee opposed the proposal. Chair Jay Clayton and Commissioners Hester Peirce and Elad Roisman supported it.
“It’s no secret that many corporate captains loathe shareholders who raise questions at annual meetings. But Congress created the SEC to protect shareholders, not coddle thin-skinned C-suiters who dislike being questioned. No shareholder asked for these new limits. Instead the pressure on the SEC comes from giant corporations and trade associations like the U.S. Chamber of Commerce and the Business Roundtable.”
- Lisa Gilbert, vice president of legislative affairs
“Clayton has cemented his legacy as an antagonist to investors by tightening the rules on shareholder activism. Shareholder resolution rules should be reformed, but in a way that provides greater latitude, not less, for engagement by the investors who own the company. We commend Commissioners Jackson and Lee for standing on the right side of fairness.”
- Bartlett Naylor, financial policy advocate