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Investor advocates oppose SEC on auto-voting
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Investment Executive
On Tuesday, two U.S. investor advocacy groups, As You Sow and the Interfaith Center for Corporate Responsibility (ICCR), filed a request with the SEC asking it to reconsider.
They argue that the program violates the SEC’s rules on proxy voting, which restrict shareholders from delegating voting authority beyond a single annual meeting.
“Exxon’s violation of current SEC proxy rules is not a technical footnote,” said Danielle Fugere, president and chief counsel of As You Sow, in a release.
The group argued that enabling a company to establish a program that recruits retail shareholder votes would also allow management to entrench itself.
“Currently retail voters hold roughly 40% of Exxon shares, and nearly 75% of those shareholders do not currently vote.