From: Tim Evanson |
SEC Chairman Christopher Cox Dear SEC Chairman Cox, Mutual funds are an increasingly important savings vehicle for tens of millions of working Americans like me. The funds enable people who do not have much time to engage in securities research and analysis to temper risk while still achieving a solid level of return. Working people are the owners of these funds and we bear the risks if they are dominated by self-interested insiders. We look to the Securities and Exchange Commission (SEC) to protect us. I am writing to express my very strong support for the proposed rule requiring that mutual fund boards have an independent chairperson and at least 75 percent independent directors. This proposed rule is among the most important reforms which may be adopted by the SEC in the wake of the mutual fund trading and sales abuse scandals. A recent study by AFSCME and The Corporate Library found mutual funds provide a rubber stamp for excessive management pay, supporting more than three-quarters of all management pay proposals. Ninety percent of institutional investors think the current system overpays executives. Investors like me need independent directors to stand up to the excesses of money managers. Small investors cannot hope to muster the shareholder support necessary to win passage of rules requiring independent directors. They are at the mercy of institutional shareholdeers, whose collusion and complicity (often due to interlocking boards of directors and other conflicts of interest) prevent the sort of change needed. The Investment Company Act requires that mutual funds be managed in the interests of their shareholders. Requiring independent directors and chairpersons will help ensure this safeguard for the small investor, to make sure the little person gets a fair shake. Sincerely, Tim Evanson
|