Divided SEC proposes investor access plan

Federal regulators on Wednesday proposed making it easier for shareholders to nominate directors for ballots of public companies, a change that could give shareholders more say over executive pay and risk controls.

The Securities and Exchange Commission, split 3 to 2 along party lines, opened the proposal to public comment.

The plan would allow groups that own a certain percentage of a company’s stock to put their nominees for director on the annual proxy ballot that is sent to all company shareholders.

The change has been pushed by investors and governance advocates.

The proposal would require different minimum levels of stock ownership according to the size of the company: 1% for the 700 biggest companies, and 3% or 5% for smaller ones.

The shareholders would need to have held the stock for at least a year.

The crisis gripping the U.S. and global economies “has led many to question whether boards of directors are truly being held accountable for the decisions that they make,” SEC Chairman Mary Schapiro said. “The time has come to resolve this debate.”