Washington – Business Roundtable member CEOs are deeply disappointed with today’s decision by the Securities and Exchange Commission (SEC) to adopt a federal proxy access right, particularly one with low eligibility requirements. This is the first major decision emanating from the recently-passed Financial Regulatory Reform legislation and unfortunately it not only expands the role of the federal government, it increases business uncertainty and costs. Far from effective reform, this ruling will allow special interest groups to pursue narrow agendas and exacerbate the market’s short-term focus, adding more uncertainty than workable solutions at a fragile time in our country’s economic recovery.
Our members believe that this newly-created and expanded federal role in how businesses are run is unnecessary and in fact harmful. Rather than encouraging the creation of long-term shareholder value, this new federal right will handcuff boards and directors and stifle American companies’ ability to focus on long-term growth by increasing costs and creating additional uncertainty for the more than 12,000 non-financial publicly traded companies.
As business leaders, we strongly oppose this course of action and are extremely disappointed that the first of many critical decisions around the implementation of financial regulatory reform will take our country down such a dangerous path,” said Larry Burton, Executive Director of Business Roundtable.