The 2021 proxy season occurs in an environment of heightened shareholder activism and an ever-increasing focus on compensation and corporate governance disclosures. This Proxy Season Field Guide provides you with an overview of recent legislative, regulatory and shareholder developments, and provides guidance on how these developments will impact you in the 2021 proxy season.
In the past few years, the SEC adopted numerous rules and rule amendments that will shape the 2021 proxy season and proxy seasons to come.
The changes include:
- Significant amendments to the description of business, risk factors, legal proceedings, Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and financial disclosure requirements;
- Provisions that will facilitate the regulation of proxy voting advice provided by proxy advisory firms; and
- Amendments to Rule 14a-8, the shareholder proposal rule, which increase submission and resubmission thresholds and introduce certain procedural safeguards.