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.
Posted by Damien Park, President & CEO Hedge Fund Solutions
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