INARM

In a letter seeking support sent to colleagues in the Senate on April 24 2009, US Senator Charles Schumer outlined five points that his proposed Shareholder Bill of Rights will enforce. They are as follows:

• Require public corporations to hold an annual advisory vote on executive compensation policies, and require shareholder approval for executive “golden parachutes.”
• Confirm the SEC’s authority to grant shareholders access to the corporate proxy for nominations to the board of directors.
• Require corporate directors to be subject to annual shareholder votes, and to receive a majority of votes cast by shareholders in order to remain on the board.
• Require publicly listed corporations to separate the duties of Chief Executive and Chainnan of the Board, so that boards can be assured of independent leadership.
• Require the boards of publicly listed corporations to create a separate risk committee in order to ensure that risk management is given appropriate oversight.

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