S&P 500 Index – Corporate America blowback | Reuters
NEW YORK, June 15 (Reuters Breakingviews) – The drumbeat to overturn Donald Trump-era rules that favored corporate America has started. High equity prices, which typically keep investors silent, are small solace for the country’s biggest chieftains.
On Tuesday a group of investors sued the U.S. Securities and Exchange Commission over changes that make it harder for individual investors to call for corporate reforms read more . The SEC was already taking another look at regulations that made it more difficult for proxy advisors to do their jobs , and in March then-acting Chair Allison Herren Lee outlined steps to revisit shareholder-unfriendly regulations.
It puts companies like Exxon Mobil (XOM.N) and JPMorgan (JPM.N) on the back foot. Shareholder returns, including dividends, for both companies have outperformed the S&P 500 Index in the past year. Yet a relatively small group of investors at Exxon won board seats last month, landing a blow to head Darren Woods. Though a proposal to vote against executive pay failed at JPMorgan, managers including Chief Executive Jamie Dimon were on guard after proxy advisor Institutional Shareholder Services urged shareholders to oppose the company.
For now, investors are having their cake and eating it, too. (By Lauren Silva Laughlin)
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