By: Patrick Temple-West
October 25, 2019
The US Securities and Exchange Commission is set to propose new limits on shareholders’ ability to agitate for change at companies, handing a win to pro-business lobby groups.
The SEC, led by chairman Jay Clayton, is expected to vote to propose rules that would require proxy adviser firms to give companies two chances to review proxy voting materials before they are sent to shareholders, according to people familiar with the plans.
The SEC will also vote to increase the resubmission thresholds for motions that shareholders file at companies on issues ranging from executive compensation to climate change disclosures, the people added. The thresholds set what level of shareholder support is needed to keep a proposal alive.