Comment letter on Department of Labor proxy voting consultation

| 12 October 2020
Blog & Articles, Corporate political capture

 

Preventable Surprises responded to the consultation on the Department of Labor’s proposed Rule on Fiduciary Duties Regarding Proxy Voting and Shareholder Rights.

We asked for the withdrawal of the rule, setting out that it is unnecessary, would create (rather than reduce) confusion, add pension plan documentation expenses not recognized in the cost-benefit analysis, violate express fiduciary duty provisions of the ERISA statute, constitute viewpoint discrimination that infringes on constitutional free speech rights and suppress the ability of ERISA fiduciaries to engage in prudent risk management practices.

In short: yet another attempt by the current administration to declaw investors and weaken corporate governance checks and balances, yet another example of corporate policy capture.

Read our letter.