Investors Withhold 35% of Votes at 115 Firms

Shareholders withheld 35% of their votes from directors at 115 companies, including Time Warner Inc. and Boise Cascade Corp., reaching a proposed threshold that would give large investors a chance to nominate their own directors, according to a review of proxy votes.

Under rules proposed by the Securities and Exchange Commission to give investors a greater voice on corporate boards, shareholder groups would be eligible to nominate board candidates if at least 35% of the votes for a company’s slate of directors are withheld.

The figures, published by Roseland, N.J.-based Automatic Data Processing Inc., which processes proxy votes for companies, come as the SEC prepares a round table on Wednesday to hear concerns about its proposals. According to the information from Automatic Data Processing, votes were withheld from more than 200 directors.

The Business Roundtable, representing 150 chief executives at large U.S. companies, is among business groups opposing the plan on the grounds it would undercut nominating committees and invite abuse by single-issue shareholder activists.