April 24, 2013
I am writing to urge the Securities and Exchange Commission to issue a rule requiring publicly traded corporations to publicly disclose all their political spending – and to do so this year.
“Dark money” groups that accept contributions from corporations, but are not required to publicly identify their corporate donors, spent millions of dollars during the 2012 elections. It is a scandal that money from publicly traded corporations – which belongs to investors – can be secretly spent to distort our democracy.
With the demise of defined benefit pensions Americans have been forced to invest in 401(k)'s, 403(b)7's, IRA's, etc. to ensure sufficient funds in retirement. However, the political needs and goals of the corporation and its Board may wildly differ, and even not be in the individual shareholders best interest. Thus, shareholder funds may be spent for political purposes that may actually harm the individual investor's best interests.
Publicly traded corporations have a fiduciary responsibility to the shareholders. However, many Americans are shareholders through mammoth mutual funds and have virtually no voice concerning expenditures of corporate funds for political purposes.
The Supreme Court’s ruling in Citizens United v. Federal Election Commission created the loophole that enables this secret spending, but the SEC has the authority to close it.
Both shareholders and the public must be fully informed as to how much corporations spend on politics and which candidates are being promoted or attacked. Disclosures should be posted promptly on the SEC’s web site.
Thank you for considering my comment.
William Kockentiet
Orlando, FL