WASHINGTON, D.C. - Today, the U.S. Securities Exchange Commission (SEC) finalized rules that would gut the proxy advisor reforms adopted in 2020 and proposed undoing reforms to the shareholder proposal system under Rule 14a-8—both reforms the American Securities Association (ASA) strongly supported.
“Today’s actions will cost public companies and their American investors millions of dollars." ASA CEO Chris Iacovella said. “By removing anti-fraud liability and conflict disclosures from the proxy process, the SEC has guaranteed that monopoly rents continue to flow to proxy advisors.”
In 2020, the SEC adopted amendments to its rules governing proxy solicitations to ensure investors using proxy advice have access to more transparent, accurate and complete information to make voting decisions. ASA supported the SEC’s proposed rules to modernize the proxy advisory process in a way that improves the governance of public companies.