WASHINGTON – The U.S. Chamber of Commerce and Business Roundtable issued a response today after the U.S. Court of Appeals for the D.C. Circuit vacated the Securities and Exchange Commission’s (SEC) proxy access rule.
“This is a big win for America’s job creators and investors,” said Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce. “We applaud the court’s decision to prevent special interest politics from being injected into the boardroom. Companies and directors need to continue to focus on the important work of creating jobs and reviving our economy. Today’s decision also sends a strong message that regulators need to meet their statutory requirement to clearly prove that the benefits of regulation outweigh the costs.”
“We’re very pleased with the court’s unanimous decision,” said Sandy Cutler, Chairman & CEO of Eaton Corporation and Chairman of Business Roundtable’s Corporate Leadership initiative. “By vacating the rule, the court has effectively placed great importance on the long-term interests of shareholders and businesses alike. The judges agreed with Business Roundtable and the Chamber of Commerce that the Commission failed to do what was required and that’s to consider the rule’s impact on efficiency, competition and capital formation. This ruling will help company management and boards pay attention to the creation of long-term shareholder value under strong and transparent rules of corporate governance.”