American Banker: Activist Bank Investors Run Into An SEC Roadblock

By Jon Prior, October 4, 2020

The Securities and Exchange Commission recently raised the bar for when activist shareholders can force votes on proposals at the annual meetings of public companies.

A new SEC rule governing investor voting could be especially significant to major U.S. banks, which have been under pressure from investors to publish data on racial and gender pay gaps, limit financing of oil and gas companies or take other actions.

The rule doesn't take effect until 2022, but one of its provisions — which set a higher threshold for the resubmission of proposals that shareholders vote down — has added to the urgency of how activist investors approach proxy season in the spring.

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