Feb. 28, 2023
February 28, 2023
As a household investor, I strongly support the SEC's proposed rule change 34-96493, which aims to improve the accuracy and completeness of information provided to investors in proxy advisory firm reports.
Proxy advisory firms play an important role in providing recommendations to investors on how to vote on matters put forth by public companies, such as executive compensation and board member elections. However, the accuracy and completeness of the information provided in these reports has been a concern for many investors, including household investors like myself.
The proposed rule change would require proxy advisory firms to provide companies with their reports prior to distribution to investors, allowing companies to review and provide feedback on the accuracy of the information. This will help to ensure that investors receive more accurate and complete information, which is essential for making informed voting decisions.
Furthermore, the proposed rule would require proxy advisory firms to disclose conflicts of interest and the methodologies used to develop their voting recommendations. This will increase transparency and accountability in the proxy advisory industry, allowing investors to better understand the factors that underlie the recommendations they receive.
In addition, the proposed rule would provide companies with a more streamlined process for challenging the accuracy of proxy advisory firm recommendations. This will help to ensure that companies have a fair and effective means of addressing any inaccuracies or errors in the reports.
Overall, the proposed rule change would improve the accuracy, completeness, and transparency of information provided to investors in proxy advisory firm reports, which is in the best interest of household investors. By ensuring that investors have access to more accurate and transparent information, we can make more informed voting decisions and protect our investments. Therefore, I strongly urge the SEC to adopt this rule change for the benefit of all household investors.