FOR IMMEDIATE RELEASE
April 17, 2008
CONTACT:
Brishen Rogers
202 721-6049
CtW Investment Group Urges SEC to Promptly Eliminate Broker Votes
WaMu Vote Shows Distorting Effects of Such Votes
Washington, DC – Today, in a letter to SEC Chairman Christopher Cox, the CtW Investment Group urged prompt approval of a longstanding NYSE proposal to eliminate uninstructed broker votes in all director elections. CtW pointed to WaMu’s annual meeting on Tuesday, where Director-nominees James Stever and Charles Lillis failed to garner majority shareholder votes, yet will be seated because broker votes were counted towards their totals. A copy of the letter is attached.
“With rising levels of shareholder opposition to directors in uncontested elections, it is essential that the SEC eliminate broker votes before shareholders are disenfranchised yet again,” said CtW Investment Group Executive Director William Patterson. “Nearly eighteen months after the NYSE proposal was submitted, we cannot understand why the SEC has not even put it out for public comment.”
Last year, calls for the SEC to act on the 2006 NYSE proposal increased after CVS/Caremark Director Roger Headrick was re-elected only because of broker votes (Mr. Headrick later resigned).
Since most brokers support management as a matter of policy, their ability to exercise discretion over certain uninstructed client shares has been criticized as “legalized ballot stuffing” by parties who don’t share investors’ economic interests.
For further information, visit www.ctwinvestmentgroup.com or contact Brishen Rogers at 202 721-6049.
Click here for a copy of the "CtW Investment Group to SEC Chairman Cox, April 17, 2008"
Click here for a copy of the "CtW Investment Group to SEC Chairman Cox, June 6, 2007"
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