SEC Acts to Eliminate Broker Discretionary Voting in Director Elections
Due to a recent amendment to New York Stock Exchange Rule 452 that will be effective for the 2010 proxy season, brokers holding shares in street name on behalf of customers will be prohibited from voting those shares in director elections, including uncontested elections, unless the customers have given specific voting instructions to the brokers. Companies should plan now for the challenges this change will present for director elections at their 2010 annual meetings.