October 4, 2007
Nancy Morris, U.S. Securities and Exchange Commission
Dear Nancy Morris, U.S. Securities and Exchange Commission,
The SEC is supposed to be the Investor's Advocate. But the two proposed options for shareholder proposals and director elections undermine investor rights. One would take away shareholders rights to file proxy access proposals. The second would set the bar for proposals too high, effectively blocking long term shareholders from the proxy ballot.
The costs of not allowing shareholders to act as owners are great. Enron and WorldCom hurt the economy, hurt workers and hurt retirement funds. Shareholders' ability to nominate directors would take power away CEO-dominated boards and give it back to a company's owners--its shareholders.
As an investor, I expect the SEC to protect my rights, not roll them back. I urge you to reject both proposed rules for shareholder resolutions and the election of directors.
Furthermore maybe pensions should be fully funded as agreed upon by employers and employees before dividends are paid out.
Senator Dick Durbin
Senator Barack Obama
Representative Phil Hare