Pension Leaders Oppose Weakening SEC Proxy Proposal

Leaders of two state pension funds asked the Securities and Exchange Commission to prevent companies from opting out of a proposed rule that would allow shareholders to nominate directors in corporate proxy materials, Pensions & Investments reported.

Posted by Matthew Keenan at January 29, 2010 at 10:12 AM

Leaders of two state pension funds asked the Securities and Exchange Commission to prevent companies from opting out of a proposed rule that would allow shareholders to nominate directors in corporate proxy materials, Pensions & Investments reported.

Keith Bozarth, executive director of the $78 billion State of Wisconsin Investment Board, and Theresa Whitmarsh, who heads the $70.5 billion Washington State Investment Board, submitted letters to the SEC last week opposing any provisions to allow companies or shareowners to decide what access to proxy materials, if any, is appropriate.

“The recent economic crisis has highlighted the need for enhanced accountability of boards for their stewardship responsibilities,” Bozarth said in his letter. “Reasonable access to corporate proxy materials for long-term investors would address some of the problems surrounding director elections. Such access could significantly enhance the U.S. corporate governance model.”

Alexander Cutler, chairman of the corporate leadership initiative of the Business Roundtable and chief executive officer of Eaton Corp., told the SEC in August that, rather than an SEC rule, state law should prevail, allowing companies to decide on amending their corporate bylaws to provide for shareholder access, P&I reported.

Click here for the full list of comment letters.