SEC Greenlights First-of-its-Kind Retail Shareholder Voting Program
Washington,D.C. – The Securities and Exchange Commission (SEC) staff has permitted a groundbreaking program allowing retail shareholders to implement standing voting instructions,a move poised to reshape shareholder engagement and potentially increase voter turnout. The program, developed by [unspecified entity – not mentioned in provided text], will enable investors to provide instructions to their broker on how to vote shares on routine matters, even if they don’t actively vote on each individual proposal.
This decision marks a meaningful shift in the landscape of corporate governance, addressing longstanding concerns about low retail shareholder participation in proxy voting. Currently, brokers often abstain from voting uninstructed shares on routine matters. This program aims to give retail investors a consistent voice in corporate decisions, regardless of their individual engagement with each proxy statement.The SEC staff’s approval paves the way for wider adoption of similar programs, potentially impacting shareholder votes on executive compensation, board elections, and other key corporate issues.
Gibson, Dunn & crutcher LLP attorneys advised on the advancement and SEC engagement surrounding the program. Key contacts include: Thomas K. kim (Washington, D.C., +1 202.887.3629,tkim@gibsondunn.com), Brian J. Lane (Washington, D.C., +1 202.887.3646, blane@gibsondunn.com),Julia Lapitskaya (New York,+1 212.351.2354, jlapitskaya@gibsondunn.com), James J.Moloney (Orange County, +1 949.451.4343, jmoloney@gibsondunn.com), Ronald O. Mueller (Washington, D.C., +1 202.955.8671, rmueller@gibsondunn.com), Michael A. Titera (Orange County, +1 949.451.4365, mtitera@gibsondunn.com), Geoffrey E. Walter (Washington, D.C., +1 202-887-3749, gwalter@gibsondunn.com), and Lori Zyskowski (New York, +1 212.351.2309,lzyskowski@gibsondunn.com).
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