From: Frank Rauscher
Mr. Christopher Cox
Dear Mr. Cox:
We work with investors that are interested in companies being good corporate citizens. As you are aware, there are companies that are not good citizens as evidenced by the need for the SEC enforcement section to exist. Shareholders have a deep interest in the success of their investments in corporations and there are many stories of investors bringing issues to the attention of management years before the issue resulted in litigation to the detriment of the investors.
Often, CEO's have experienced the "Halo" effect (they believe that they are angels in all areas when they have good short term results in one area - usually short-term financial results). As such, shareholders have few remedies at present to bring them down to earth to discuss the trade-offs between short-term and long-term results.
Please drop these ideas to restrict advisory proposals before they become a formal SEC rule making proposal. If you proceed, we expect there would be substantial opposition from both individual and institutional investors. Ask anyone outside of Wall Street if they believe that many U.S. corporate CEO's are arrogant and you will find many that believe this true. Just as Washington,D.C. inhabitants inside the beltway are often considered to be out of touch with America, so are many of the Wall Street crowd.
We believe in capitalism where one maxim is the golden rule "He who has the gold makes the rules". We have the gold as investors, why would you prevent us from making rules for our company. If we live in a democracy, why cannot the shareholders vote on a proposal? If the company has a good position, let them defend it at the ballot box!
Aquinas Associates, Suite 300, 8117 Preston Road Dallas, Texas 75225 Phone 972-596-1222.