FYI – study’s abstract: “Shareholder proposals provide investors an opportunity to exercise their decision rights within a firm. However, not all proposals created by shareholders receive consideration. Managers
can seek permission from the Securities and Exchange Commission (SEC) to
exclude specific proposals from the proxy statement. From 2003-2013, we find that managers seek to exclude 40% of all proposals they receive, but the SEC does not permit exclusion in over a quarter of the cases.
Of the proposals that managers seek to exclude but the SEC does not allow, 28% win shareholder support or the firm voluntarily implements prior to a vote. Our analysis of contested shareholder proposals suggests that managers often seek to avoid the implementation
of legitimate shareholder interests.”
Michael McCauley
Senior Officer, Investment Programs & Governance
Florida State Board of Administration (SBA)
1801 Hermitage Blvd., Suite 100
Tallahassee, FL 32308
(850) 413-1252 (o) / (850) 694-0168 (m)