U.S. SEC proposes rules urging hedge funds, endowments to disclose votes

WASHINGTON/BOSTON, Sept 29 (Reuters) – The top U.S. securities regulator on Wednesday proposed requiring large hedge funds and endowments to disclose how they vote on executive pay, bringing this clutch of influential investors in line with other top funds that have made their pay votes public for a decade.

The proposal, subject to a 60-day period of public consultation before further action can take place, would also mandate investors provide more details about how share lending affects proxy voting as well as prescribe how funds and managers organize their reports by requiring the use of a structured data language to ease analysis.

Wednesday’s4 to 1 vote in favor of these changes by the Securities and Exchange Commission (SEC) come as the first rule proposals under Democratic chair Gary Gensler.

Together, the changes from the Democratic-led agency are meant to bring more transparency to shareholder annual meetings, partly by implementing rules mandated by the Dodd-Frank financial reforms of 2010.

Among S&P 500 company CEOs average total pay rose 52% to $12.18 million in 2020 from $8 million a decade earlier, according to compensation consultant Farient Advisors.

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Source: Reuters