Managing Money :: SEC gives shareholders more power

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Released: August 26, 2010

SEC gives shareholders more power

Source: Zachary Goldfarb, Washington Post (Free Registration)

For years, the nation’s largest companies - from FedEx and Macy’s to AT&T and IBM - have opposed proposed federal rules that would make it easier for shareholders to oust directors on corporate boards. These industry giants have said that the proposed rules would be costly and hurt average investors saving for retirement or their children’s college education.

On Wednesday, the companies lost the argument. The Securities and Exchange Commission voted 3-2 to approve new rules giving shareholders new powers to nominate directors to corporate boards. Supporters say the rules will give shareholders the ability to hold boards accountable for overseeing executive pay and other decisions that companies make.

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