The U.S. Securities and Exchange Commission on Tuesday said it was not imposing Trump’s time rules on stock-based advisory companies, which is detrimental to companies like ExxonMobil who say proxy advisors have more power.
In his remarks, Commission Chair Gary Gensler He said asked the agency’s staff to reconsider the restrictions of those who promote the legitimacy of the agency approved July 2020. Employees should also consider guidelines for the protection of support counselors organization published in 2019, he said.
SEC He said “It would not encourage action” based on the 2019 agency’s guidelines for proxy advisors and the 2020 legislation, now that the council is “considering further developments in the region”.
Gensler’s idea highlights the success of Institutional Shareholder Services and Glass Lewis – two major support companies. State-owned companies represented by the Business Roundtable and the US Chamber of Commerce had asked the SEC to impose rules on its advisers.
But investors – who use proxy technology to vote on corporate governance – were pleased with the SEC’s actions.
“It’s Christmas in June for investors,” said Amy Borrus, executive director of the Council of Institutional Investors. “The SEC’s Gensler chairman’s suggestion today that the council consider its negotiations against their advisers is a great opportunity for investors and consulting firms that could be held by the government that the committee approved in the former government.”
The ISS has filed a lawsuit against the SEC for non-compliance with the 2020 rules, and the case is still pending in court. Oral negotiations are scheduled for June 7. The SEC’s directive is to seal the ISS and Glass Lewis with new legal fees.
“We are receiving a declaration from the SEC to consider complying with its rules,” the ISS said He said in words.
The ISS and Glass Lewis provide advisors on how to vote on corporate matters from the disclosure of climate change to the election of committee members, and their views may be helpful.
ISS and Glass Lewis respectively acceptance three and two elected to the board of ExxonMobil appointed by activist hedge fund Engine No 1 Last week. At least two of the nominees were confirmed as winners.
In a 2020 letter to the SEC, Exxon also stated that it complies with the rules of the board of trustees.
Dennis Kelleher, president of the Better Markets advocacy group, said: “Trump’s SEC actions were flawed and probably illegal. retailer and re-empowering investors.