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The Pure BS of the Proxy Cost Case
[Been a little while since the last blog posts, we've been busy...]
We reflected a bit on the proxy access decision and debate since last week's news, and came to a realization about the nature of the DC Appellate Court decision to vacate the SEC's proposed regulations: this is pure BS.
How so? Well, the Court called the SEC's accounting for the costs and benefits of compliance "unpersuasive". They criticized the SEC's enumeration of costs and benefits as "inconsistent" and "opportunistic".
Yet, most of the supposed costs (to corporations of proxy access) are not only supposed, but are actually discretionary - companies spend money on proxy contests because they choose to, not because regulations require them to.
Read our current blog post on the nature of the costs of proxy contests, and how the Court's decision missed the mark.
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| You can find other useful resources at the TAI website, including our research on "Effective Activism, on the Cheap", the new guide to executive compensation, bibliography of academic research on the returns to activist investing, and our white paper with the basics on activism. |
