Activist investor Carl Icahn has been lobbying for increased shareholder rights. And new reports suggest he might be making some progress.
According to a Bloombergreport, “the U.S. Securities and Exchange Commission may let shareholders who own 1 percent of the biggest companies nominate directors on corporate proxy statements, giving investors a new tool to overhaul boards at banks blamed for helping fuel the financial crisis."
Bloomberg also says, “the SEC will probably consider the proposal, which would apply to companies with market values exceeding $700 million, at a May 20 public meeting in Washington.”
It’s very good for investors, comments Karen Finerman. I’m sure Carl is happy. But it’s only a first step.