New SEC Special Interest Proxy Access Rule Is “Giant Step Backwards” for Investors

Unfortunately, Proxy Access is a Solution in Search of a Problem,’ Hirschmann Says

WASHINGTON, DC—David Hirschmann, president and CEO of the U.S. Chamber’s Center for Capital Markets Competitiveness, issued the following statement today on the SEC’s adoption of a so-called “proxy access” rule:

“This special interest-driven rule is a giant step backwards for average investors. Using the proxy process to give labor union pension funds and others greater leverage to try to ram through their agenda makes no sense. Instead of giving some investors front-of-the-line passes, the SEC should be focused on advancing the interests of all investors, including retail investors. The Chamber will carefully review the rule that was approved today and will continue to fight this flawed approach using every method available.

“We are concerned that proxy access will allow certain shareholders to have a louder voice than others and harm the very investors this rule purports to defend. The Chamber is committed to a system that allows all shareholders to have an equal voice. The SEC is responding to the campaign of a small group of special interest activist investors while ignoring the needs of the vast majority of investors who will never be able to use proxy access.

“Over the past decade, companies have provided many new methods for shareholders to communicate with management and the board. Unfortunately, proxy access is a solution in search of a problem. Rather than focusing on good corporate governance, the SEC has given special interests the ability to hold the board hostage on narrow issues at the expense of other shareholders.”

Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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