Please know that I'm a big believer in easier proxy access. Some people may think that I'm dead-set against it.
However, "proxy access" is not a silver bullet solution; it's a solution after you, the shareholder owner and investor, have been shot by a poorly governed company. Proxy access is "reactive" and is not "pro-active".
The wording of the Schumer bill does not put teeth where it needs to be and that is on the side of the professional investment and pension fund managers to be better engaged in researching, assessing, monitoring, and analyzing the corporate governance profiles of the companies they are buying and selling for OUR benefit - i.e. retirement, college-funds, trust fund, etc... And disclosing how they are incorporating these assessments in their compliance program(s).
Investors look upon professional investment and pension managers as folks who should be completely informed about a company's risks and if you're not looking at governance as a risk, well, what good are you? Where's the value in launching a proxy fight after the $60 or $80 stock that was one of your "Top 10 Holdings" craters to $3 a share?
As I have previously said, if you're not managing the risk, the risk is going to certainly manage you.
However, "proxy access" is not a silver bullet solution; it's a solution after you, the shareholder owner and investor, have been shot by a poorly governed company. Proxy access is "reactive" and is not "pro-active".
The wording of the Schumer bill does not put teeth where it needs to be and that is on the side of the professional investment and pension fund managers to be better engaged in researching, assessing, monitoring, and analyzing the corporate governance profiles of the companies they are buying and selling for OUR benefit - i.e. retirement, college-funds, trust fund, etc... And disclosing how they are incorporating these assessments in their compliance program(s).
Investors look upon professional investment and pension managers as folks who should be completely informed about a company's risks and if you're not looking at governance as a risk, well, what good are you? Where's the value in launching a proxy fight after the $60 or $80 stock that was one of your "Top 10 Holdings" craters to $3 a share?
As I have previously said, if you're not managing the risk, the risk is going to certainly manage you.
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