AIG chairman Robert Miller worries that the SEC’s new “proxy access” rule allowing shareholders to nominate corporate directors at public companies will cause “people with narrow-interest agendas” to seek a place on the board, “eroding” the firms’ competitiveness. I can think of something else that might erode a company’s competitiveness.
The idea that giving investors more say over corporate governance will allow “special interests” to hog-tie management and pursue their agenda, to the detriment of other shareholders, is silly. Here’s why: Any board candidate, whether backed by shareholders or the company, will still require majority support to get elected.
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