September 23, 2020

Crapo Statement on SEC Action Modernizing Shareholder Proposals

WASHINGTON, D.C. – U.S. Senator Mike Crapo (R-Idaho), Chairman of the U.S. Senate Committee on Banking, issued the following statement on the Securities and Exchange Commission’s (SEC) adoption of amendments to Exchange Act Rule 14a-8, the shareholder-proposal rule.   

“I commend the SEC for finalizing its efforts to modernize shareholder proposal thresholds. Commissioner Roisman, incorporating years of engagement with investors and market participants, diligently spearheaded these efforts, ensuring that shareholder-proponents demonstrate a sufficient economic stake or investment interest in a company in order to submit proposals to be included in a company’s proxy statement. The final amendments strike the appropriate balance between those shareholders submitting proposals and the shareholders who bear the costs associated with reviewing, considering and voting on such proposals in the company’s proxy statement. This modernization no longer permits a small number of individuals with limited stakes to consume corporate boardrooms, and comes at a crucial time, as companies are focusing their efforts on recovering from COVID-19 disruptions.”