ICCR Statement on Recent Policy Change at the SEC

The SEC’s recent announcement that the agency will be stepping back from responding to most No Action requests by companies this year is disturbing and disappointing. SEC leadership appears to be using the excuse of the government shutdown to give companies an open invitation to exclude any or all shareholder proposals from their proxies for the coming proxy season, outside of the notice and comment period typically mandated for such sweeping changes to the rules.

Please see the response from SEC Commissioner Carolyn Crenshaw, which sums up ICCR’s concerns very clearly and forcefully.

While we are alarmed by this announcement, we are not surprised. When the current SEC Chair spoke publicly about his plans to undermine Rule 14a-8 last month, we expressed our concerns publicly and signed onto a recent letter sent by a coalition of investors to the SEC Chair reiterating those concerns and respectfully requesting a meeting with him to discuss them.

As the full ramifications of this most recent announcement by the SEC and the ways it will be implemented take shape, ICCR and its members will remain vigilant and engaged. We believe that shareholders should continue to file proposals as planned. The tools we have long depended upon to promote sustainability for corporations and a more dynamic economy remain critical.

We are committed to providing needed support to ICCR members and to our broader community in this very challenging environment.