SEC Amends Rules Related to Proxy Advisory Firms
After numerous years of debate over the role and influence of proxy advisory firms, on July 22, 2020, the Securities and Exchange Commission moved forward with the adoption of final rules that will impose new obligations on proxy advisory firms. While the final rules operate to the advantage of issuers in a few meaningful ways, the final rules are far less prescriptive than the originally proposed rules and do not mandate that proxy advisory firms give companies an opportunity to review and provide feedback on draft proxy voting advice.