This statement is useful in assessing how management is paid and potential conflict of interest issues with auditors.
[3] In July 2010, the SEC announced that it was seeking public comment on the efficiency of the proxy system.
In 2016, the SEC proposed a rule requiring a "universal" proxy card so that shareholders could vote on a mix of candidates, which as of 2019 had not passed.
These organizations use proxy advisory firms, notably including Institutional Shareholder Services and Glass Lewis, to help them vote their shares in a responsible way.
The United States Dodd–Frank Wall Street Reform and Consumer Protection Act specifically allowed the SEC to rule on this issue.
In 2010, the SEC passed a rule which allowed certain shareholders to place candidates on the proxy statement;[14] however, in Business Roundtable v. SEC[15] the rule was struck down by the United States Court of Appeals for the District of Columbia Circuit in 2011.