Jan. 14, 2020
Jay Clayton, Chairman Securities and Exchange Commission 100 F Street, NE Washington, DC 20549-0609 January 14, 2020 Re: File No. 4-725, SEC Staff Roundtable on the Proxy Process Dear Sir: The SEC must require proxy advisory firms to abide by clearer reporting and operating guidelines. The life savings of millions of everyday Americans depends on this. I am a human resources professional in Pinellas County. Other than health care, the benefit people usually care about most is their 401(k). Social Security provides only modest retirement income and is intended to supplement personal savings. 401(k) plans are often a worker’s best chance to grow their personal nest egg. They put a lot of trust in investment experts and have the right to expect these professionals will do all they can to get high returns on the money they invest. Proxy advisory firms have undermined that trust. By researching and making recommendations based on their, not investors priorities, they are single handedly able to predetermine outcomes on shareholder resolutions. As such, they are prone to support activists pushing for resolutions on political issues within corporate management. There is ample data showing this politically skewed investing often means lost growth opportunities. This is an affront to people anxious about their golden years not to mention a violation of fiduciary duty. Too many Americans are ill prepared financially for retirement. Many state public pension funds are short of what they will need to pay in future obligations. In this environment, it is inconceivable that proxy firms are restraining potential growth in pension and 401(k) plans, all to support the political goals. At a time when pension funds’ funding gaps are growing. Political agendas should not dictate or even influence investments that affect thousands or even millions of people. I hope the SEC will increase transparency over the entire proxy advisory process, reducing the risks that a handful of operators will continue to undermine investment growth. As they say, sunshine is the best disinfectant. I hope the new rules will take effect as soon as possible. Sincerely, Anna Carr