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Proxy Advisor Warns Businesses on Investor Votes
Glass Lewis said Friday it may urge INVESTORS dissent from direction-backed nominees if firms block INVESTOR-submitted suggestions on the grounds that they “disagreement” with the businesses’ own suggestions.
Glass Lewis said it may take such measures in scenarios where a firm’s proposition “changes materially” from the investor-backed measure and direction does not provide “adequate justification.”
At issue are so called proxy-access propositions that permit qualifying INVESTORS to print the names of candidates for corporate boards of directors onto business votes.
Proxy advisors including Glass Lewis provide applications that lets INVESTOR cast votes at hundreds or even tens of thousands of businesses economically, according to policies determined by the INVESTORS make voting recommendations and assess corporate proxies.
Business groups such as the Business Roundtable had encouraged proxy advisors companies while the Securities and Exchange Commission reviews its rules to stay out of the fight. It was uncertain if Institutional Shareholder Services Inc., another big proxy advisory business, would advocate similar dissents.
The SEC started a furor in December when it permitted Whole Foods Market Inc.’s determination to blow off a proxy-accessibility measure permitting INVESTORS possessing 3% of the firm’s shares for three years to nominate their own nominees. The high end grocer said it intended to improve a similar suggestion of its own with brink that is 9%, although no single stockholder owns more than about 5% of its stock. Whole Foods later lowered that threshold to 5%, though investor supporters warned that bar was still high.
In response to questions over its earlier determination, the SEC last week overruled its Whole Foods verdict and said it’d require “no perspectives” for the rest of proxy season on whether firms could leave such propositions out of their proxy materials. It intends to review a rule which allows companies to exclude shareholder proposals if direction intends to provide similar changes to its governing documents.
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