SEC Chair Jay Clayton recommended a number of topics for discussion at the SEC Staff Roundtable on the proxy process. The roundtable is scheduled for Fall 2018.
Mr. Clayton proposed consideration of:
- the proxy voting process, including (i) the potential for over- and under-voting by broker-dealers, (ii) the difficulty that investors have in determining whether their voting instructions were followed, and (iii) the costs and challenges of distributing proxies;
- the low rate of participation of retail shareholders in the voting process, and whether this can be addressed;
- the shareholder proposal process, including whether those with small holdings should be able to force votes, and whether long-term investors should have a greater ability to force a vote;
- the role of proxy advisory firms;
- the use of technology in the proxy process, including the possibility of using blockchain technology to conduct votes; and
- the 2016 SEC proposal to require the use of universal proxy cards in election contests.
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