Proxy Access Puts Pressure on Boards

Source Article: (The Wall Street Journal, 23 August 2010)

On Wednesday, the SEC is expected to finalize a proxy access rule that will allow large shareholders to nominate firms’ board candidates beginning in 2011. The move is intended to improve accountability by less transparent boards.
Our View: Review your own company’s corporate governance and create a communication plan for contested issues with investors as well as a plan to provide directors with frequent feedback on shareholders’ perception of company governance and strategy. Proxy access is one rule being rolled out as a result of wider financial reform in the U.S.
How We Can Help (IR clients): Sometimes it is necessary to get back to the basics when gauging investor activism and activity. Also, revisit how your CFO can bring value in addressing this common concern.