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 Advisors, which advises institutional investors on corporate governance issues. “The DOL is trying to give a great big fat giveaway to the very last people they should be concerned about to the detriment of (participants).”
If implemented, the rule will likely be treated as “an insignicant compliance issue,” because the value and impact of proxy votes is already well established, Ms. Minow said. “Nevertheless, this rule is an atrocity,” she added. “There’s no way that it could withstand a challenge in court, and we’ll do everything we can to make that clear during this idiotically truncated comment period.”
When our comment is submitted, we will post it here.