Press Release: ASA Commends SEC Action to Modernize Proxy Advisory Process
WASHINGTON – The American Securities Association (ASA) today commended the U.S. Securities and Exchange Commission (SEC) for its leadership and meeting to consider new guidance to modernize the proxy advisory process in a way that increases transparency and accountability to benefit Main Street investors and retirement savers.
“Chairman Clayton is grabbing the bull by the horns and taking meaningful steps to modernize the proxy advisory process in a way that benefits and protects Main Street investors while making the corporate governance process more efficient for America’s public companies,” said ASA CEO Chris Iacovella. “Today’s actions also build on the Chairman’s promise to reduce burdens on small businesses who want to go public earlier in their life cycle, which we strongly support.”
ASA strongly supports proxy advisory process reforms that would:
- Subject the voting reports proxy advisory firms produce to the anti-fraud provisions of the proxy solicitation rules;
- Prohibit proxy advisors from offering rating and consulting services to issuers on any matter that they are also being paid by an investor to provide a voting recommendation on (there is no way to manage this conflict); and
- Update the resubmission thresholds for proposals that lose by wide margins.
In June, ASA sent a letter to the SEC applauding the Commission for initiating a comprehensive review of the proxy process and also outlined additional reform recommendations. To read the letter, click here. ASA CEO Iacovella has penned numerous op-eds on the need to reform the proxy process. He has been featured in The Hill, RealClearMarkets, and Morning Consult.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.