SEC Chairman Prioritizes Public Offering Reforms; Trump Signals Renewed Scrutiny of Proxy Advisers

Recent developments indicate a dual focus on regulatory reform for public companies, with the SEC Chairman Paul Atkins prioritizing public offering reforms and President Donald Trump signaling renewed scrutiny of proxy advisers. In a speech on October 9, Chairman Atkins outlined the following priorities to encourage public offerings:

1. review SEC disclosure obligations, particularly focusing on executive compensation disclosures, to make filings less burdensome and easier to understand;

2. reduce SEC involvement in proxies, particularly discouraging SEC support for proxy issues that do not relate to the core business objectives of corporations; and

3. reduce shareholder litigation, particularly by supporting mandatory arbitration provisions.

It was recently reported that President Trump is considering an executive order to limit the influence of proxy advisers. Although the details of any proposals have not yet been announced, this aligns with efforts during the prior Trump administration to restrict the activities of proxy advisers. A source within the administration indicated that officials are also exploring limits on how index-fund managers are allowed to vote.