Ric Marshall of MSCI writes:
The SEC is considering a proposed rule that would curb the ability of small individual investors — so-called “nuisance investors” — to propose shareholder resolutions on corporate proxies.
We found that many proposals authored by small individual investors won substantial support from 2015 through 2019.
More than half of all proxy proposals targeted 85 of 2,353 companies we analyzed in this period, with only 12 large companies receiving four or more submissions each year.
Are shareholder proposals submitted by small individual investors a nuisance to be eliminated and unneeded? In a proposal to reform the proxy process, the U.S. Securities and Exchange Commission (SEC) appears focused on the costs borne by companies that have to include such proposals in their proxies.1 But such a change may disadvantage all shareholders, who have provided significant levels of support for these initiatives.