Friday, May 1, 2009

Sen. Schumer's "Dear Colleague" Letter Re: Shareholder Bill of Rights Act of 2009

Senator Charles E. Schumer (D-NY) circulated a "Dear Colleague" letter in the Senate this week, requesting fellow Senators support his Shareholder Bill of Rights Act of 2009.

The Act will:

  • Require public corporations to hold an annual advisory vote on executive compensation policies, and require shareholder approval for executive "golden parachutes."
  • Confirm the SEC's authority to grant shareholders access to the corporate proxy for nominations to the board of directors.
  • Require corporate directors to be subject to annual shareholder votes, and to receive a majority of votes cast by shareholders in order to remain on the board.
  • Require publicly listed corporations to separate the duties of Chief Executive and Chairman of the Board, so that boards can be assured of independent leadership.
  • Require the boards of publicly listed corporations to create a separate risk committee in order to ensure that risk management is given appropriate oversight.
Click here to download Senator Schumer's letter.

Posted by Damien Park, President & CEO Hedge Fund Solutions