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SEC Change Gives Companies Discretion Over Shareholder Proposals Amid Litigation
The SEC’s policy shift has led to at least three lawsuits and a similar shareholder proposal block rate as last year, raising concerns over regulatory clarity and corporate discretion.
- The U.S. Securities and Exchange Commission in November changed its process, Reuters reported on March 2, giving U.S.-listed companies discretion over shareholder proposals.
- Amid criticism from Republican officials, a person familiar with the agency's thinking said the change partly aimed to save SEC staff time, while activists linked it to Trump-appointed regulators curbing ESG efforts.
- At least three investor lawsuits have been filed against AT&T, Axon Enterprises and PepsiCo, with New York City pension funds suing AT&T on February 17 and securing a vote settlement.
- The move injected uncertainty, Giovanna Eichner said 'More than anything, this lack of structure and rules is actually just leaving everyone unsure about the best way to move forward,' and activists warned companies face legal and relationship risks.
- Despite new discretion, As You Sow has filed 47 proxy resolutions this year while companies blocked up to a half-dozen, and Starbucks scheduled the vote for its March 25, 2026 meeting.
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Trump's SEC gave companies more power over investors. Lawsuits pushed them back
A new federal approach giving U.S. companies more say over which proposals shareholders can vote on at their annual meetings is creating regulatory uncertainty and leading to litigation, activists said.
·United Kingdom
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Trump's SEC gives companies more control over investors. They were pushed back by lawsuits
Activists said that a new federal approach, which gives U.S. firms more control over the proposals that shareholders vote on during their annual meetings, creates regulatory uncertainty and leads to litigation. In November, the U.S. Securities and Exchange Commission changed its tradition of having staff approve shareholder proposals before a company rejects them. It gave executives greater discretion in deciding which resolutions to include on …
Coverage Details
Total News Sources8
Leaning Left0Leaning Right2Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 40%
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