Steps Toward Shareholder Democracy

WASHINGTON, D.C. — In mid-July, the Securities and Exchange Commission (SEC) recommended new rules permitting shareholder-nominated corporate directors to stand for election on company proxy notices. This was a huge victory for AFSCME. In fact, in its report, the SEC acknowledges that the AFSCME Employees Pension Plan shareholder proposals triggered the response.

For years, the Plan has tried to use its ownership of company stocks to cause management and directors to be more accountable to their shareholders. This involves a direct interest: Public pension plans covering AFSCME members have assets of more than $1 trillion.

AFSCME Pres. Gerald W. McEntee said of the old procedure: "Current elections virtually equal 'coronations.'"

This SEC shift occurred as the AFSCME Employees Pension Plan (for AFSCME staff) concluded its most successful proxy season ever. Achievements have come in the areas of good corporate governance, responsible executive pay and curbing tax havens.