Last week, TPA wrote to Congress expressing growing concern over more mission creep by the Securities and Exchange Commission (SEC). The letter noted that, “Companies, in consultation with their shareholders, should be free to manage their businesses as they see fit. This includes efforts regarding various societal issues tangential to their core business. However, it has become clear that public policy, specifically SEC regulation, is playing a significant role in driving political and policy outcomes pertaining to publicly-traded corporations in an extra-legislative manner. In addition, this dynamic is costing companies millions of dollars in additional compliance costs that are ultimately passed on to consumers. In order to correct this problem, Congress must ensure that SEC regulations regarding shareholder proposals are tightened to prevent frivolous use of the process and that regulation of the shareholder proposal process is anchored to objective metrics, not subjective political or policy judgements.

Read the full letter here and below. 

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