For Immediate Release
Monday, February 07, 2005
Statement of Gerald W. McEntee, Chairman of the AFSCME Employees Pension Plan and President of the American Federation of State, County and Municipal Employees, On the SEC's Decision on Proxy Access at Halliburton
"Today's decision to exclude the AFSCME Shareholder proposal obligates the Commission to make a decision about a shareholder's right to proxy access. After almost two years of deliberation the SEC must now offer guidance and a final rule that establishes a process for how shareholders can nominate directors.
"The reason why shareholders need access can be found on the financial pages of newspapers across the country. Corporate financial restatements are up 28 percent, the CEO's at WorldCom, HealthSouth, and Enron are on trial and new scandals continue to make headlines.
"We are disappointed that the Commission changed the ground rules in the eleventh hour. It is disingenuous for the SEC to first establish an interim process to allow shareholders to offer advisory proxy access proposals and then take away that right because they have taken too long to make their own decision. We hope this is not a trend on the heels of the Commission's flip-flop on Disney.
"The current situation at Halliburton represents the worst of corporate America: cooking the books, doing business with terrorist states and cutting deals of questionable legality with oppressive regimes around the world. We hope that the Administration did not use political influence to protect its special relationship with the company.
"We intend to pursue proxy access at individual companies where boards have failed shareholders until a broader proxy access rule is established."
The American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, is the nation's fastest growing public service employee union with 1.4 million members. AFSCME organizes for social and economic justice in the workplace and through political action and legislative advocacy. AFSCME represents a diverse group of service and health care workers in the public and private sectors including nurses, EMTs, bus drivers, child care workers, custodians and librarians.
