The Magazine of Corporate Responsibility

Tag Archive for ‘Securities and Exchange Commission’

Women in the Boardroom: Should the U.S. Have Quotas?

Columnist Gael O’Brien says the U.S. has failed to show leadership in gender diversity on corporate boards, raising questions about what it can learn from other countries that have imposed quotas for women directors. While quotas can stir up discomfort, she writes, there’s a “complacency, even smugness” about boardroom diversity in the U.S. that argues in favor of requiring companies to take action.

11 Reasons Why We Need the Shareholder Protection Act

The Shareholder Protection Act, introduced today in the U.S. Congress, addresses governance problems left in the wake of the Supreme Court’s 2010 decision in Citizens United, which enables corporations to spend an unlimited amount of money on political advertising. The bill is modeled on the U.K. Companies Act, which requires prior shareholder approval of corporate political donations.

Dodd-Frank Act: How Financial Reform May Be Going Wrong

Almost a year ago, President Barack Obama signed the Dodd-Frank Wall Street Reform Act into law. Now, some emerging roadblocks reinforce a fear that Dodd-Frank, which was intended to touch on almost every aspect of the American financial system, may never provide the sweeping reform it promised.

Political Spending Proposal Defeated at Home Depot

The proposal by NorthStar Asset Management, a Boston money manager, requested that the company annually report on its political policies and contributions, disclose future anticipated spending, and provide an analysis of how such spending matches company values or policy. Although the measure was defeated, it is considered to be a template for similar proposals at other corporate annual meetings.

SEC Adopts Final Whistleblower Rules

Commission chairman Mary Schapiro said that while the Sarbanes-Oxley Act has helped protect whistleblowers and improve internal reporting systems at public companies, “too many people remain silent in the face of fraud. Today’s rules are intended to break the silence of those who see a wrong.”

Social and Environmental Shareholder Proposals Gain Traction

Shareholder proposals on social and environmental issues constitute about half of all resolutions in the 2011 proxy season and have become a serious strategic consideration for corporate boards and their members, according to a new report from the consulting firm Ernst & Young. “The degree of support for these types of resolutions is growing among mutual funds and other important investors,” the report finds.

SEC in Hot Seat, Facing Funding Fight and Criticism Over Ethics

Mary Schapiro, head of Securities and Exchange Commission, heads to Capitol Hill on Thursday to advocate for a funding increase, which Congressional Republicans have said that her agency doesn’t deserve. She has also been criticized for hiring a top lawyer for the SEC who had financial ties to Bernard Madoff, whose massive Ponzi scheme the agency failed to pursue for years.

Pay for Risk-Appropriate Performance

Among the December 2009 proxy rule changes approved by the SEC was a requirement that companies discuss and analyze risks that are reasonably likely to have adverse effect on the company’s reputation and/or sustainability. This means companies must not only identify the risks facing them but also determine the probability and severity if realized and how that relates to the company’s compensation policies and programs.

In Postcrisis Report, a Weak Light on Complex Transactions

Reporter Jesse Eisinger credits the Financial Crisis Inquiry Commission’s just released report for being full of fascinating information and detail. Its biggest failing, he suggests, “is its timidity in engaging the most important question looming over the crash: What did Wall Street know and when did it know it?”

Goldman’s Self-Help: Eat, Pay, Trade

Reporter Jesse Eisinger suggests that Goldman Sachs’ announcement last week of a plan to increase transparency and disclosure does not resolve some big questions about the investment banks’ role in financial markets. “Could there be an argument that Goldman should break up into three smaller, more focused companies?” he asks. “It would be better for the financial system, and just might lead to the self-improvement that Goldman is searching for.”