The 50th anniversary of the publication of Milton Friedman’s essay advocating profit (within the law) as the primary purpose of the corporation in the New York Times was observed with reactions and responses from a range of experts. In our view, most missed the point. Unless otherwise explicitly noted and disclosed to investors in the…
Proposed amendments to shareholder proposal rules—bruised but unbowed? – Cooley PubCo
The SEC may have postponed until next week the open meeting originally scheduled for yesterday to consider adoption of revisions to the shareholder proposal rules, but Reuters has the inside scoop on the outcome of at least one controversial provision: according to Reuters, say farewell to the “momentum” provision. The expected deletion of the provision,…
Our Audit of EY’s Apology for Wirecard Finds it Inadequate
Note use of passive voice and that faintest of excuses: it was really, really hard. Not acceptable when the auditor’s primary job is to verify the company’s accounts, and that included detecting fraud. “Many people believe that the fraud at Wirecard should have been detected earlier and we fully understand that,” Mr Di Sibio wrote…
Even the Threat of a Tougher Rule on Financial Advice Has Helped Investors – The New York Times
A battle over exactly how investors should be treated when they get financial advice has been underway for years. The Obama administration pushed for stricter investor protections, while the Trump administration has been putting looser rules into effect. But here’s the thing: The tougher Obama rules, which were never fully put into effect, have already…
Rio Tinto Executives Step Down After Shareholder Revolt over Sacred Australian Sites – The New York Times
In May, the minerals giant Rio Tinto decided to blow up the caves [containing sacred Aboriginal artifacts] to get at the riches below. But on Friday, it became clear that Australia’s most powerful export industry had met a force it could not bulldoze: the global movement for racial justice. The company announced that its chief…
Kurt Schacht:
The Labor Department Is Tearing Down a Landmark of Investor Protection Kurt N. Schacht, head of policy for the CFA Institute and former chair of the SEC Investor Advisory Committee. writes in Barron’s: Corporate governance and shareholder rights have seldom witnessed an assault on investor protection like the current federal government’s onslaught. Whether weakened rules…
VEA Vice Chair Nell Minow Quoted in P&I About the DOL/EBSA Proposal on Proxy Votes
P&I’s above the fold front page headline is “Proxy proposal angers institutions”. VEA Vice Chair Nell Minow is quoted: “It’s just a reflection of the fact that institutional investors have become more aware of corporate governance as an element of shareholder value and corporations don’t like that,” said Nell Minow, Washington-based vice chairwoman of ValueEdge…
Letter to the SEC on Shareholder Proposals Charges the Commission with Improper Exclusion of Evidence
A group of investors including the Council of Institutional Investors, ICCR, SIF, CERES, and PRI have written a very powerful letter to the SEC about the proposed rule on shareholder proposals, which is supposed to be voted on this month. The letter accuses the Commission of not allowing an adequate basis for comment on the…
Fidelity, BlackRock Reject Trump Limits on 401(k) ESG Investing – Bloomberg
The world’s largest asset managers are speaking out against a Trump administration plan that would make it more difficult for them to incorporate environmental, social and governance factors when making investment decisions, a move that could limit green investing in 401(k) plans. Fidelity Investments wrote in an 11-page letter to the U.S. Department of Labor that the…
