ASA Op-Ed in The Hill: The SEC Shouldn’t Let Political Operatives Stop Reform of the Shareholder Process
Last week, millions of Americans went to the polls to cast their vote in the midterm elections and help shape the future of policymaking for our country. Through the democratic process, we were able to make our voices heard and hold those in power accountable. And like most Americans, we are looking forward to the political ads finally leaving our living rooms and for the country to come together.
Unfortunately, an alliance of fund managers and proxy advisors acting as political operatives are trying to extend the worst of the campaign season beyond the final ballot and into America’s corporate board rooms.
The shareholder proposal and proxy advisory process, rightfully used by most investors to question and challenge management decisions about the best way to increase company profits, has been hijacked by this group. Their goal is not to increase returns to shareholders, but to use the process to inject partisan political discussions into board meetings. They want the divisive issues debated during political campaigns and best settled in the halls of Congress to dominate the board room. This should raise a red flag for every American saver with money in the U.S. stock market.
To read the full op-ed in The Hill, click here.