Activists in the Boardroom

City Journal's 10 Blocks

James R. Copland joins Rafael Mangual to discuss how activist investors are turning corporate America’s annual shareholder-meeting process into a political circus.

Most of corporate America is wrapping up the 2019 "proxy season" this month—the period when most publicly traded companies hold their annual meetings. It's at these gatherings that shareholders can (either directly or by proxy) propose and vote on changes to the company. Since 2011, the Manhattan Institute has tracked these proposals on its Proxy Monitor website. This year's proxy season has followed a long-term trend: a small group of investors dominates the proceedings, introducing dozens of progressive-inspired proposals on issues ranging from climate change to diversity.

Copland has testified before Congress on the importance of reviewing the rules developed by the Securities and Exchange Commission governing the shareholder-proposal process. The Senate and SEC are considering changes to ensure that these proposals are relevant to business and fair to other shareholders.