Robust Support for Proxy Advisory Firm Reform Legislation

H.R. 4015, Corporate Governance Reform and Transparency Act, is scheduled for a vote on the floor of the U.S. House of Representatives this week. Reforming the proxy advisory industry is a topic important to many public companies and we see widespread industry support for our efforts. Nasdaq gathered nearly 300 signatures for our letter sent Friday to House leadership in support of this legislation as it clears a key hurdle toward enactment.

While proxy advisory firms wield enormous influence over the corporate governance landscape, their methods are not transparent, and they are rife with conflicts of interest. Our 2017 Nasdaq-Chamber Proxy Season Survey results show that while there has been a modest increase in communication between companies, proxy advisory firms and shareholders, many issues remain.

Proxy reform is an integral part of the Revitalize initiative we launched in May to streamline and reform the capital markets ecosystem and continue our leadership role as an advocate for all public companies. We remain committed to working with Congress to move proxy advisory legislation through the process of becoming law.

Nasdaq is proud to advance dialogue for reforms that provide for more robust, transparent and efficient markets for both issuers and investors.

Related links

Proxy Advisory Reform: Legislation Update

Results: 2017 Proxy Season Survey

Nasdaq’s Revitalize Blueprint

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