WASHINGTON, D.C.—Dennis Kelleher, Co-founder, President and Chief Executive Officer of Better Markets, applauded the Securities and Exchange Commission’s action today regarding proxy voting advice:
“We applaud the SEC Chairman’s action today directing the staff to consider recommending further regulatory action in connection with the recent proxy voting advice rules and the staff’s related statement. This is a loud and clear signal that the SEC is going to prioritize shareholder and investor rights once again, not enact management’s agenda to handcuff and gag investors as Trump’s SEC wrongfully attempted.
“Investors are too often at the mercy of management’s self-interested, incomplete and biased disclosures, positions and views, even though investors are supposed to be the owners of public companies and management is supposed to work for them. This circumstance is compounded by the ‘collective action problem’ because investors are innumerable, widely dispersed and disconnected. One of the few avenues available to investors to address these problems is to obtain independent information by hiring firms that provide proxy voting advice. Because those independent firms make recommendations to investors contrary to management’s wishes, management and Corporate America have tried to control or muzzle those firms.
“The actions by Trump’s SEC were wrong and likely illegal, as Institutional Shareholder Services, Inc. alleged in a lawsuit filed to overturn the rule. Given that the SEC exists to protect investors, not incumbent management, today’s actions properly begin the process to restore investors’ rights and re-empower investors.”
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.