November 30, 2018
The Senate Banking Committee will hold a hearing next week to consider proxy process issues and Sens. Jack Reed (D-RI) and David Perdue's (R-GA) bipartisan “Corporate Governance Fairness Act,” which would give the SEC new powers to examine proxy advisory firm advice and conflict of interest policies.
The bill harkens back to a time when compromise was not a dirty word on Capitol Hill and represents a departure from the House’s proxy advisory firm bill, which sought to create a comprehensive SEC-led proxy advisory firm oversight regimen.
The bipartisan Senate bill pursues proxy advisory firm reform through three primary objectives:
Why it matters: Proxy advisory firms are under pressure, with the introduction of the Senate bill plus the SEC’s proxy advisory firm roundtable. The Association’s Center On Executive Compensation is advocating on the Hill and at the SEC for the proxy advisory firm industry reforms we outlined in comments submitted to the SEC roundtable earlier this month.