Correcting the Record of the Proxy Roundtable

The Securities and Exchange Commission held a Roundtable discussion of the proxy process, including the shareholder proposal process, on November 15, 2018.  

During the roundtable, participants from the Business Roundtable and Chamber of Commerce made a number of misleading statements. The following charts, courtesy of the Sustainable Investments Institute, will help correct the record on two key issues.

1. Support for social and environmental proposals is rising, not falling.

2. The trade associations imply that the fact that some proposals may receive less than 50% support year after year shows they are not appropriate for resubmission.  But shareholder proposals prompt engagement, and sometimes the proponents must persist over a course of years. Some of that effective engagement is demonstrated by the increasing portion of withdrawals.