December 12, 2019
As an individual investor of modest means, I greatly enjoy the investing process. From researching companies' business models to deciding the weights of stocks in my portfolio, I derive not only a financial return but also the satisfaction that comes with having built something entirely yourself. Additionally, I highly value the current proxy voting system as it allows even small time investors like me a voice in how companies are run. With these new increases in how much share value you have to own in order to submit proposals to a company, fellow investors like myself will have their voices and interests snubbed. If I own a share with voting rights, then I have a right to influence how a company is run. Part of that is being able to submit proposals to that company. However, with the new rule change, I would have to own up to 12 times the amount of share value ($25,000). For larger investors, this isn't a problem, but for people like me whose entire portfolio may only be $25,000, how are we supposed to simultaneously remain diversified and be able to let the company board know what we want? Even if the vote fails, the very act of letting companies know through proposals that their shareholders care about an issue (or simply are tired of watching CEOs raising their own salaries or initiating pointless share-buy schemes at the expense of shareholders).
I see no reason for this rule change other than to muzzle small investors. The prior system was perfectly fine. Because of these proposed changes, I may be forced to invest internationally with companies that will at least listen to my concerns.