The U.S. Chamber of Commerce is not happy about the new rules the Securities and Exchange Commission proposed earlier this week. You remember -- the ones that would allow institutional investors or shareholder alliances to nominate independent directors.
David Hirschmann, CEO of the chamber's Center for Capital Market Competitiveness, isn't mincing words. "This is a step in the wrong direction," he says of the proposal. "The U.S. Chamber will continue to vigorously oppose any plan that allows groups to use the proxy process to promote narrow interests that do not serve the long-term goals of a company or its investors."
The FINANCIAL reports a Navigant study released this week supports the chamber's position because it demonstrates that shareholder activism does not benefit investors.