Five years ago, climate activists stunned corporate America by winning three seats on Exxon Mobil’s board. Similar revolts have forced some of the nation’s biggest companies to address climate change. Now, the federal regulator overseeing shareholder rights is making it harder for small investors to convey their concerns.
In November, the Securities and Exchange Commission, or SEC, announced that it would essentially stop weighing in on whether companies must put shareholder proposals to a vote. Then, in January, the agency said it would no longer allow investors with less than $5 million in shares to use its online system to send communiqués, known as exempt solicitations, to fellow shareholders. Such documents are often used to lay out an investor’s stance on a given issue, including climate action.
The SEC says the moves are an attempt to rein in the scope of government and ease burdensome regulation. But others see them as a way to contain the influence of potentially irksome investors. “We are concerned that they limit the voice of [company] owner... Read more
