Commissioner Aguilar Remarks: "Shareholders Need Robust Disclosure to Exercise Their Voting Rights as Investors and Owners"

SEC Commissioner Luis A. Aguilar delivered remarks regarding the importance of robust proxy disclosure to shareholders, and highlighted areas in which disclosure can be improved in light of annual shareholder meetings soon taking place for many public companies. Commissioner Aguilar stated that the SEC requires issuers and other parties that solicit proxies to provide shareholders with a proxy statement with specific information regarding the meeting, the proxy process, and the matters to be voted on, including director qualifications and compensation. Aguilar also discussed the following:

• Compensation risks;
• Leadership structure and risk oversight;
• Board diversity; and
• Disclosure of corporate political spending.

The Commissioner concluded by stating that public companies that understand the importance of good corporate governance will make sure their proxy statements provide shareholders with all the information they need to exercise their rights as investors and owners.

View remarks in full here (links externally to SEC website).