Schapiro Says SEC Will Consider Proxy Voting Process
SEC Chairman Mary Schapiro, in a recent speech to the Business Roundtable, said that the SEC intends to issue a concept release concerning the modernization of the proxy process, which she said has “not kept pace with current market conditions or trading practices.” She said that the SEC would consider whether proxy advisory firms should be subject to greater oversight and whether the SEC should change the OBO/NOBO system. She also indicated that the SEC intends to adopt a final rule on proxy access for next year’s proxy season.
OUR TAKE: This is the first time that we have seen the SEC express concern about proxy advisory firms. It is also noteworthy that Ms. Schapiro is promising the final proxy access rule by next year.