ATR Launches Shareholder Advocacy Forum to Counter Rise of Corporate Activists
Friday May 17, 2019
Americans for Tax Reform today launched the Shareholder Advocacy Forum, a project to preserve the long-term interests of shareholders and counter the rise of activist shareholder proposals that often force a company into a stance on an unrelated social policy. The Shareholder Advocacy Forum’s goal is to protect all shareholders’ interests and to maximize their return on investment, including pension fund beneficiaries and small shareholders who rely on the continued growth of these investments for their retirement planning.
SAF will also examine the role proxy advisor firms play in providing recommendations to shareholders. These supposed conflict-of-interest-free organizations have been cited as a reason for the chilling effect in the IPO market. Existing public companies have seen these firms become more activist in nature when providing recommendations and the role their recommendations have had in undermining the long-term interests of company’s shareholders. SAF plans to hold directors and executives accountable when they place the social agenda of some ahead of their fiduciary duty to all shareholders.
SAF will also be a voice at the table to provide support for legislative and regulatory proposals and serve as an educational platform to emphasize why it is important for shareholders to continue participating in the voting process. In addition, SAF will maintain that decisions of private institutions and shareholders should be respected and protected from government intrusion, including instances of shareholders supporting mergers and acquisitions.
SAF will publish recommendations on shareholder proposals, highlights from recently published research, and letters supporting and opposing legislation. James Setterlund will serve as the Executive Director of SAF.
In the News
Appeals Court Upholds SEC Regulation Best Interest
Retail investors received a major win June 26, 2020 as the Second Circuit Court of Appeals upheld the SEC’s Regulation Best Interest, just days before the June 30, 2020 compliance date. Reg BI establishes a “best interest” standard of conduct for broker-dealers when making recommendations to retail customers, replacing…
In the News
Public Pension Funds Gamble Retirement Savings Through Robo-Voting
By Prateek Patel April 29, 2020 Click here to view the Morning Consult piece Many Americans are finding it challenging to watch carefully planned retirement investments adjust daily as a result of the coronavirus emergency and uncertainty in the current economic environment. For public-sector employees, like policemen, firefighters, or…
In the News
SEC Proposal Strikes at Crucial Middle Class Investments
By Christina Mitsopoulos March 26, 2020 Click here to view the Morning Consult piece The Securities and Exchange Commission (SEC) is sitting on a proposal that would render a class of investment products unavailable for all but the uber-wealthy. Nestled in the release is a troubling pair of “sales practices…
In the News
Financial Transactions Tax plan would hit retirement savers hard
By Ryan Goff Analysis/Opinion: Click here to view the The Washington Times piece. Retirement savers, small scale investors and startups: These are the people who stand to lose the most with a Financial Transactions Tax. The tax would directly reduce household savings for retirement and education, shut off a…
In the News
California Confronts the Cost of Politically-Driven Divestments
Ryan Goff | Posted: Oct 15, 2019 12:01 AM Share Click here to view the Townhall piece. In a critical moment, pensioners in the California Public Employees’ Retirement System wait to see if politicians want to throw away money after the bill that bans the use of private prisons…
In the News
SEC Could Reshape How Shareholders, Businesses Communicate … for the Better
By Amanda Panchery August 23, 2019 Click here to view the Morning Consult piece The Securities and Exchange Commission is considering amending some of its regulations relating to shareholder proposals, which have not been amended in over a decade. In May, the SEC released its spring 2019 rule-making agenda,…
In the News
ESG is Lobbyists’ New Buzzword as Dems Mull Mandated Reporting
Environmental, social, and governance issues get more attention from lobbyistsUptick comes as Democrats in House float bills to mandate ESG reporting By Andrea Vittorio and Andrew Ramonas | August 5, 2019 6:28AM ET Companies’ approach to environmental, social, and governance issues is getting more attention from lobbyists as Democratic…
Proposals
Morning Consult – Mastercard Shareholders Should Reject ‘Human Rights’ Proposal
Click here to view the Morning Consult piece At the Mastercard shareholder meeting today, shareholders who have not already voted electronically or through their financial advisor will have an opportunity to vote on five proposals. Three of the proposals are consistent across public companies: executive compensation, independent accounting firm…