Proxy voting was (is) a big issue for regulators. What does the new ESG rule have to say on the topic?
Tim Hauser, Deputy Assistant Secretary for Program Operations of the Employee Benefits Security Administration (EBSA), sat down with American Retirement Association CEO Brian Graff to discuss this and a number of other topics.
“With respect to proxy voting, this new rule reaffirmed management’s obligation to manage shareholder rights and kind of push back on the notion that maybe as a routine matter fiduciaries should abstain from voting,” Hauser said.
Titled “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights”—a.k.a. the “ESG rule” —it went into effect on January 30. Graff and Hauser explore its implications.
THE FULL INTERVIEW CAN BE FOUND HERE