Reforms Should Encourage ‘What’s Good for the Economy’ Long Term

In an op-ed published in today’s The Wall Street Journal, Business Roundtable President John Engler urges changes to the U.S. shareholder proposal system:

“[T]he rules governing shareholder proposals are broken. Small-stakes investors take advantage to flood companies with frivolous ballot measures. The cumulative effect is to drag down the economy by consuming time and money that could be put to better use.

“Federal regulators need to step in and tweak the rules. … A simple reform could help un-muck the cogs of corporate governance and prevent future abuse: The SEC should raise the ownership threshold for shareholders to submit proposals. …  

“When business leaders get bogged down in political fights, they are not concentrating on what’s good for the economy and for the country: expanding their businesses and hiring more workers.”

Click here to read the full op-ed.

Business Roundtable is offering solutions to support job creation and grow the U.S. economy over the long run. Learn about them at: brt.org/growth.