Proxy Fee Advisory Committee Proposes Recommendations on Proxy Distribution Fees
16 Maggio 2012 - 3:00PM
Business Wire
The Proxy Fee Advisory Committee (PFAC), formed by the New York
Stock Exchange, today published its recommendations for changes to
the fees paid by public companies to banks and brokers for the
distribution of proxy materials to shareholders who hold their
stock in “street name.” Composed of issuers, broker dealers and
investors, the PFAC was formed in September 2010 to review the
existing proxy distribution fee structure and make recommendations
for change. Any changes to these fees are subject to SEC
approval.
Overall, the Committee’s recommendations will propose to
streamline proxy fees and make them more transparent to issuers as
well as result in a modest decrease in total fees paid of
approximately 4%, although some fees will increase and others will
decrease. The impact on any individual participant will vary
somewhat depending on their circumstances.
“Proxy distribution fees have been part of the NYSE’s rules
since 1937, and have been reviewed and changed periodically over
that time,” said Scott Cutler, Co-Head of U.S. Listings and Cash
Execution and member of the PFAC Committee. “The NYSE has long
operated under the assumption that these fees should represent a
consensus view of the issuers and the broker-dealers involved.”
The goals of the Committee have been to support the current
proxy distribution system, including continued support for the
elimination of mailings; to encourage and facilitate active voting
participation by retail beneficial owners; improve transparency of
the fee structure and ensure that fees are as fair as possible and
aligned with the work involved.
“The recommendations reflect a great deal of careful
consideration by the Committee, with invaluable support by the
NYSE, and input from many different stakeholders in the process,”
said Paul Washington, Senior Vice President, Deputy General Counsel
and Corporate Secretary of Time Warner Inc., and PFAC Chair. “The
proposed fee structure is intended to continue to support a
world-class process that facilitates communications with, and
voting by, stockholders; and one that will be flexible enough to
encourage further efficiencies and voter participation by retail
stockholders.”
Recommendations of the Proxy Fee Advisory
Committee
- Streamline the proxy fee categories
into three basic fee categories – a nominee fee, a basic processing
fee and a preference management fee – to increase
transparency.
- Provide a more gradual tiering of the
basic processing fee to smooth the “cliff effect” that occurs
between large/small issuers.
- Reduce preference management fees for
managed accounts to half the normal rate, and eliminate all
processing fees for managed account positions of five shares or
less.
- Increase modestly the processing fees
for special meetings and contests.
- Reduce by half the fee for annual
meeting reminder notices, to support improved shareholder
communication.
- Subject the Notice & Access fees to
the proxy fee rules.
- Allow issuers to stratify their NOBO
lists, rather than require issuers to pay for complete lists as is
currently industry practice (see below).
The PFAC also recommended that the NYSE:
- Explore the impact of allowing issuers
to request stratified NOBO lists, including an extra fee for
stratification.
- Discuss the proposal to create an
investor mailbox as a possible means to increase voting
participation by retail shareholders with additional industry
representatives so it can be determined whether the proposed
“success fee” is at an appropriate level.
- Create an ongoing process to review
proxy fees and services more frequently going forward.
The Committee recognizes that there is a reliable, accurate and
secure proxy distribution process in place today. The Committee’s
stated purpose is to bring proxy distribution fees in line with the
work performed and add increased transparency. It should be noted
that the Committee’s fee recommendations do not attempt to take
into account potential changes to SEC rules that are discussed in
the SEC’s proxy plumbing concept release.
The NYSE will initiate discussions regarding the PFAC’s
recommendations with the SEC, after which the NYSE would expect to
submit a rule change proposal to the SEC reflecting the outcome of
these discussions. Any rule filing proposal would be published for
public comment prior to SEC approval.
To read the full Proxy Fee Advisory Committee report, please
click here.
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial
markets and provider of innovative trading technologies. The
company's exchanges in Europe and the United States trade equities,
futures, options, fixed-income and exchange-traded products. With
approximately 8,000 listed issues (excluding European Structured
Products), NYSE Euronext's equities markets — the New York Stock
Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca —
represent one-third of the worlds equities trading, the most
liquidity of any global exchange group. NYSE Euronext also operates
NYSE Liffe, one of the leading European derivatives businesses and
the world's second-largest derivatives business by value of
trading. The company offers comprehensive commercial technology,
connectivity and market data products and services through NYSE
Technologies. NYSE Euronext is in the S&P 500 index. For more
information, please visit: http://www.nyx.com.
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024