Small firms may get break in SEC proxy rule-source

WASHINGTON Aug 24 (Reuters) - U.S. securities regulators are considering giving small companies a reprieve from plans to make corporate boards more accountable to shareholders, a person familiar with the Securities and Exchange Commission's thinking said on Tuesday.

The SEC is hashing out a rule that would give shareholders who own at least 3 percent of a company's stock for at least three years the ability to nominate a board director, the source said.

Small companies could be given a three-year delay to comply with a new rule, according to the plan currently under consideration, the source said.

The source requested anonymity because the plan is not final and could change before the SEC meets on Wednesday to decide whether to adopt it. (Reporting by Rachelle Younglai; editing by John Wallace)