Last week, corporate governance professionals were abuzz about the legal challenge filed by U.S. Chamber of Commerce and Business Roundtable to the to the Securities and Exchange Commission’s (SEC) final rules requiring a corporation to include in its proxy materials director nominees put forward by a shareholder (or group of shareholders) who have owned three percent or more of company stock for at least three years. Well, today, the SEC announced that it would delay implementation of its new proxy access rule. The SEC also indicated that it would join with the U.S. Chamber of Commerce and the Business Roundtable in seeking an expedited review of the new rule by the U.S. Court of Appeals for the D.C. Circuit.
This should mean no proxy access for the next set of annual meetings, at least. Of course, we still have to implement Shareholder Say on Pay, so don’t schedule any vacation just yet.