Lawyers
Corporate partner Carmen Lu spoke with Responsible Investor about how the recent SEC changes to the rules governing investor communications and ownership filings, along with customized voting and AI, are driving uncertainty for companies. In the article, “U.S. Companies Adapt to Stewardship’s ‘New Normal’ After SEC Changes,” published on October 1, Carmen notes that the SEC’s revised rules create unofficial safe harbors for issuer-shareholder discussions, and indicate that the SEC may have been surprised by the strong reaction to its original changes. The rise of customized voting is reducing, but not eliminating, the influence of proxy advisers’ views; “ISS and Glass Lewis’ influence is waning, but still meaningful,” Carmen notes. In the medium- to longer-term, the transition towards customized voting “is going to create a fair amount of uncertainty, and it’s going to be hard to know for sure how investors are going to vote.”
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