Excerpt: The guidance largely echoes existing law, and would not affect governance proposals on things like say-on-pay, majority voting or poison pills, all of which the agency said 'are reasonably likely to affect the economic value of the plan.' Where the guidance would come into play is on social or political proposals. According to the guidance, 'the mere fact that plans are shareholders in the corporations in which they invest does not itself provide a rationale for a fiduciary to spend plan assets to pursue, support or oppose such proposals.' The guidance is vague in its wording and has been interpreted differently by groups on both sides.

MORE >>