The Securities and Exchange Commission (SEC) is launching an effort to review the proxy rules for shareholder engagement to make sure they are consistent with changes in the markets.
The proxy process is a major element of shareholder engagement and corporate governance. Since the last proxy process review in 2010, there have been many changes in the markets, technology, and how companies operate. This fall, SEC staff will host a roundtable to hear from investors, issuers, and other market participants about whether the SEC’s proxy rules should be updated.
The amount of shareholder engagement has increased sharply since 2010. Currently, 72 percent of S&P 500 companies report engagement with shareholders compared to just 6 percent in 2010. Additionally, the range of topics subject to shareholder engagement also has gone up. The roundtable will assess the proxy process and shareholder engagement.
Among the potential topics for consideration are the proxy voting process, retail shareholder participation, shareholder proposals, proxy advisory firms, as well as technology and innovation.
The date, agenda items, and participants will be announced after they are finalized.
The public can provide their views on the proxy process through the SEC’s Internet submission form, via email at rule-comments@sec.gov.