U.S. SEC proposes rules that could limit shareholder voices

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U.S. SEC proposes rules that could limit shareholder voices
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Wall Street's top regulator on Tuesday proposed a pair of long-awaited rule...

WASHINGTON - Wall Street’s top regulator on Tuesday proposed a pair of long-awaited rules that would set new limits on shareholders’ ability to call for corporate changes on thorny issues like climate change disclosures and executive compensation.

Both shareholder proposals and proxy advisory firms are cornerstones of corporate governance and how investors hold management accountable.Democrats Rob Jackson and Allison Herren Lee voted against the rules, saying they tilted the playing field toward corporate management.The current thresholds for re-submissions of proposals date from 1954, SEC officials said.

Proxy advisory firms, including Institutional Shareholder Services Inc., recommend to investors how to vote and cast ballots on behalf of some asset managers. Industry groups, like the U.S. Chamber of Commerce and the National Association of Manufacturers, both of which lobbied aggressively for the proposals, praised the SEC’s moves.

New York City Comptroller, Scott Stringer, said that if implemented, the agency’s actions would be “a shameful gift to corporate executives at the expense of shareowners.”

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