Corporate executives may soon hear a lot more from investors about climate change and social issues after Wall Street’s top watchdog took steps to make it easier for proposals on these topics to get a vote at annual shareholder meetings.
The change -- which was not subject to a vote by the regulator’s commissioners -- is the latest attempt by the agency to make it easier for shareholders to take action on hot-button issues like race and climate change since Chair
“In recent years, hundreds of companies have come to the staff seeking no-action letters with respect to shareholder proposals,” Gensler said in a statement. The new guidance “will provide greater clarity to companies and shareholders.”
Earlier this year, the SEC refused to allow
“By repealing longstanding guidance about treatment of shareholders’ proposals, the SEC has stated its preference to turn board rooms and shareholder meetings into political debate societies,” he said in an e-mailed statement. “We call on the SEC to immediately reverse this decision.”
(Adds comment from U.S. Chamber of Commerce in final two paragraphs.)
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