WASHINGTON, DC – Today, Congressman Bryan Steil’s (WI-01) legislation, the Protecting Americans’ Retirement Savings from Politics Act, passed in the House Financial Services Committee. The legislation is focused on improving the shareholder proposal and proxy voting advice process to prioritize retirement savings over partisan politics. Following the passage of the legislative package, Steil released the following statement.
“Radical activists have been using your hard-earned retirement savings to advance their agenda,” said Steil. “I’m focused on ensuring retirement and pension funds are being managed based on the importance of protecting your retirement savings, not political agendas. This bill is an important step towards empowering investors, restoring transparency, and enhancing competition.”
Background:
H.R. 4767, the Protecting Americans’ Retirement Savings from Politics Act, improves the shareholder proposal and proxy voting process to prioritize corporate growth over partisan political issues. It raises resubmission thresholds for shareholder proposals, invalidates certain SEC regulations and guidance, limits the SEC’s ability to define a “major policy issue,” and allows companies to exclude environmental, social, and political proposals. Additionally, the bill provides transparency and accountability to the proxy advisory industry, prohibits robovoting, and requires proxy advisory firm clients to issue annual public reports on their proxy voting. Finally, the bill requires large asset managers to conduct economic analysis when voting against board recommendations and requires investors to consent to the use of non-pecuniary factors in decision-making.
The bill is a compilation of eleven previously introduced bills, including:
- H.R. 4641, the Performance Over Politics Act, originally sponsored by Rep. Scott Fitzgerald (WI-05)
- H.R. 4644, the No Expensive, Stifling Governance (No ESG) Act, originally sponsored by Rep. Erin Houchin (IN-09)
- H.R. 4640, a bill to authorize the exclusion of shareholder proposals from proxy or consent solicitation material if the subject matter of the shareholder proposal is environmental, social, or political, originally sponsored by Rep. Byron Donalds (FL-19)
- H.R. 4657, a bill to clarify that an issuer may exclude a shareholder proposal pursuant to section 240.14a-8(i) of title 17, Code of Federal Regulations, without regard to whether such proposal relates to a significant social policy issue, originally sponsored by Rep. John Rose (TN-06)
- H.R. 4662, the Corporate Governance Examination Act, originally sponsored by Rep. Ann Wagner (MO-02)
- H.R. 4589, a bill to amend the Securities Exchange Act of 1934 to provide for the registration of proxy advisory firms, and for other purposes, originally sponsored by Rep. Steil
- H.R. 4590, a bill to amend the Securities Exchange Act of 1934 to provide for liability for certain failures to disclose material information in connection with proxy voting advice, and for other purposes, originally sponsored by Rep. Steil
- H.R. 4648, a bill to amend the Securities Exchange Act of 1934 to provide for duties of certain investment advisors, asset managers, and pension funds with respect to voting on shareholder proposals, and for other purposes, originally sponsored by Rep. Loudermilk
- H.R. 4656, the Protecting Americans’ Savings Act, originally sponsored by Rep. Zach Nunn (IA-03)
- H.R. 4645, the Empowering Shareholders Act, originally sponsored by Rep. Huizenga
- H.R. 4600, the Protecting Retail Investors’ Savings Act, originally sponsored by Rep. Andy Barr (KY-06)
