NLPC in RealClearMarkets: SEC Makes Politicizing Corporations Easier

Writing today for RealClearMarkets, Paul Chesser, director of NLPC’s Corporate Integrity Project, explains how a newly enacted Securities and Exchange Commission rule could make it easier for well-organized progressive groups to make corporations even more “woke.”

Excerpts from the piece:

A new Securities and Exchange Commission “universal proxy” rule that went into effect on August 31 may extend the advantage the political Left has in boardrooms.


It could also further empower huge, influential investment firms like BlackRock and Vanguard – as if they needed it…


The rule mainly addresses the nomination and election of directors to a company’s board…


…It will be easier for “dissident” shareholders to advance their nominees to the “universal” proxy ballots…there is now no minimum threshold for ownership, or for length of time of ownership.


Under the new thresholds of eligibility, progressive shareholders will be well-prepared to put forth their own slates of candidates. You can be sure of that. And institutional investors like BlackRock will be even more empowered than they already are, should they want their own directors for certain corporations…


Conservative activists face the prospect of wholly transformed boards of directors. ESG advocates can potentially be more successful under the new SEC rule than before. Conservative proponents who formerly showed up at annual board meetings to resist “woke” policies before an audience of management-oriented directors, now instead may be met with an even more ideologically hostile collection of corporate leaders.

Read Paul’s full explanation of the new SEC rule at RealClearMarkets.




Tags: BlackRock, corporate boards, Securities and Exchange Commission