SEC takes measures intended to improve corporate governance

By Lisa Kerner

Charlotte, N.C., July 1 - The Securities and Exchange Commission said it voted Wednesday on three measures designed to "better inform and empower investors to improve corporate governance and help restore investor confidence."

According to the SEC, it:

• Proposed requiring public companies receiving money from the Troubled Asset Relief Program to provide a shareholder vote on executive pay in their proxy solicitations;

• Voted to propose better disclosure of executive compensation at public companies in their proxy statements; and

• Approved a New York Stock Exchange rule change to prohibit brokers from voting proxies in corporate elections without instructions from their customers.

"With over 800 billion shares being voted annually at over 7,000 company meetings, it is imperative that our proxy voting process work - starting with the quality of disclosure and continuing through to the integrity of the vote results," SEC chairman Mary Schapiro said in a news release.

The NYSE's proposal will apply to shareholder meetings held on or after Jan. 1.

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