The following Letter Type A, or variations thereof, was submitted by individuals or entities.
SEC Chairman Christopher Cox
I urge the SEC to require an independent chairman on mutual funds boards. Too often mutual funds are designed to enrich fund insiders and management. The role of independent directors is critical to ensure the protection of small, individual directors.
A recent study by the American Federation of State, County, and Municipal Employees and the Corporate Library found that mutual funds provide a rubber stamp for management's pay, supporting over three-quarters of all management pay proposals. Ninety percent of institutional investors think the current system overpays executives. Independent directors are needed to stand up to the excesses of the money managers.
The Investment Company Act requires that mutual funds be managed in the interests of their shareholders. Requiring independent directors and chairpersons will help ensure this safeguard for the small investor, to make sure the little guy gets a fair shake.