Segal Marco Advisors Expects Action Impacting Investor Rights in 2017
Segal Marco Advisors expects action in 2017 on some key provisions in the Dodd-Frank Act that will impact investor rights, according to the firm’s Corporate Governance Report released this week.
“A complete repeal of Dodd-Frank is unlikely but investors could lose some protections,” commented Maureen O’Brien, Vice President and Corporate Governance and Proxy Voting Practice Leader at Segal Marco Advisors. President Trump signed an executive order on Friday, February 3 to begin reexamining Dodd-Frank. Two provisions that are likely to change are a threshold for enhanced regulatory oversight of banks and a section which requires companies that source gold, tantalum, tin or tungsten to determine whether their purchase helped fuel the ongoing conflict in the Democratic Republic of the Congo and surrounding areas.
The report also noted that Segal Marco is seeing investors engage companies, largely through organized coalitions, on issues that include executive compensation, diversity and board accountability.
“Executive compensation continues to be a strong focus of our corporate governance work,” said O’Brien. “In 2016, we cast about 2,500 advisory votes on executive compensation plans and supported slightly more than half, 52 percent.”
Segal Marco’s voting record remained consistent in 2016 with previous years, according to the report. The push for proxy access on shareholder proposals remained strong while efforts around social and environmental proposals gathered steam.
“The policy priorities of a new presidential administration could dampen or ignite investor efforts to address corporate governance, as well as environmental and social priorities,” added O’Brien.
Segal Marco Advisors offers corporate governance services to assist clients with proxy voting and shareholder advocacy. The full report provides a summary of 2016 market environment for corporate governance, a summary of the 2016 proxy votes on the most common issues, 2016 voting statistics and 2017 proxy voting guidelines.
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Segal Marco Advisors (www.segalmarco.com), a member of The Segal Group, is a newly-merged firm of two leading investment consultancies – The Marco Consulting Group and Segal Rogerscasey. Together this firm provides innovative, client-driven consulting advice, outsourcing solutions, proxy voting and corporate governance. Clients include joint boards of trustees administering benefit plans under the Taft-Hartley Act, state and local governments, corporations, non-profit organizations, endowments and foundations. The firm works with financial services firms through Rogerscasey, a Division of Segal Advisors, and with Canadian clients through Segal Rogerscasey Canada. The firm is also a founding member of the Global Investment Research Alliance.
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The Segal Group (www.segalgroup.net) is a privately owned benefits, compensation and investment-consulting firm with more than 1,000 employees throughout the U.S. and Canada. Members of The Segal Group include: Segal Consulting, Sibson Consulting, Segal Select Insurance Services, Inc. and Segal Marco Advisors.