Council of Institutional Investors Deplores SEC Move to Curb Investor Rights

WASHINGTON, Nov. 28 /PRNewswire/ -- "This is a sad day for shareowners,"said Ann Yerger, executive director of the Council of Institutional Investors."The Council of Institutional Investors is deeply disappointed that theSecurities and Exchange Commission, which takes pride in its mission as theinvestor's advocate, has adopted a rule that weakens investor protections."

The rule bars shareowners from submitting a proxy resolution that asks acompany's board to allow owners to place their nominees for director alongsidethe board's on the company's proxy card. "The SEC's action muffles the voiceof shareowners in director elections," Yerger said.

The Council has long urged the SEC to adopt rules that provide a limitedpath for long-term shareowners to nominate their own candidates on the companyproxy card. "A measured right of access would invigorate board elections,"said Yerger. "It would make boards more responsive to shareholders, morethoughtful about whom they nominate to serve as directors and more vigilant intheir oversight of companies."

SEC Chair Chris Cox said he wants the commission to revisit the issue ofshareowner access to the proxy next year, and only voted to close off avenuesto access now to avoid legal confusion until a better rule is approved. Butthe SEC's adoption of a no-access proposal will sow legal discord and is astep in the wrong direction. "It makes no sense for the commission to do thewrong thing now but promise to try to do the right thing next year," Yergersaid.

The Council of Institutional Investors (CII) is a nonprofit association ofpublic, union and corporate pension funds with combined assets that exceed $3trillion. Member funds are major long-term shareowners with a duty to protectthe retirement assets of millions of American workers.

The Council strives to educate its members and the public about corporategovernance, and to advocate for strong governance standards at U.S. publiccompanies. Corporate governance covers a spectrum of issues-from disclosure toenforcement-involving the relationship between shareowners, directors andmanagers of a company. Good corporate governance fosters transparency,responsibility, accountability and market integrity.SOURCE Council Of Institutional InvestorsAmy Borrus, Deputy Director of the Council Of Institutional Investors,+1-202-261-7082, amy@cii.org