The Securities and Exchange Commission might be bringing in new rules supposedly tightening up disclosures on pay and board performance but don't hold your breath. It's not going to stop corporations from behaving badly and, in any case, you would have to wonder how serious the SEC is with documents turned over to the nonprofit group Project on Government Oversight in response to a Freedom of Information Act showing the SEC did nothing to rein in SEC employees suspected of various crimes, from insider trading to assisting in a Ponzi scheme.
If corporations are to be reined in, it has to come from shareholders which is why it's heartening to read reports that activist shareholders will target US companies including Bank of America, American Express and Whole Foods over their succession plans and more. This will be put to a vote. The push will come from the unions which have pension funds managing billions of dollars of investment. The activism follows the SEC relaxing rules that had prevented shareholder votes on succession.
The new SEC disclosure rules might usher in even more activism further down the track.
no comment untill now