Shareholders will garner more power thanks to a pending Securities and Exchange Commission proposal, but as the commissioners get closer to a final decision, a compromise that makes everyone happy or sort of happy seems imminent, The Wall Street Journal reports.
Chairman William Donaldson had said earlier this year that he wholeheartedly supported a proposal that would allow shareholders power in the nomination and election of maligned companies directors, but he backed off a bit when the other two Republican commissioners and some businesses railed against it. Their contention was that boards would be opened to special interests if the regular shareholders had more power.
Now, the Journal reports a revised proposal is in the works, even though it still seems unlikely that Donaldsons fellow Republican commissioners, Cynthia Glassman and Paul Atkins, would vote for it.
While exact specifics of the proposed compromise are not known, the Journal reported that it would fall somewhere in between the original proposal and one that allows a committee, selected by a board, to replace directors. The final compromise could result in a situation where common shareholders meet with the board to make the decision.