Trump SEC Appointee Shifts Power from Investors to Corporate Boards
New SEC policies under acting chair Mark Uyeda limit shareholder influence on corporate governance and environmental, social, and governance (ESG) reforms.
- The SEC, led by acting chair Mark Uyeda, has introduced policies that strengthen corporate boards' ability to block shareholder resolutions, particularly on ESG issues.
- Changes include stricter filing requirements for passive funds and limits on shareholder communications, making it harder for activists to challenge boards or propose reforms.
- The revised rules allow companies to bypass votes on shareholder proposals deemed to 'micromanage' business operations, reducing the traction of ESG-related initiatives.
- New interpretations of beneficial ownership reporting increase costs for major asset managers like BlackRock and Vanguard, potentially discouraging investor engagement.
- Critics argue the policies undermine shareholder influence and transparency, while supporters claim they refocus the SEC on financial returns over activism.
The Globe and Mail 
