Shareholder Proposals and Access: What to Expect in 2009

At the onset of 2009, millions of Americans and other individuals from around the world traveled to the nation’s capital to witness a glimpse of history — inaugurating the 44th president of the United States. Recovering from a tumultuous 2008, January is perceived by some as a moment to reinvigorate the masses as the United States struggles through one of its history’s worst financial crises. Contrary to the optimism and enthusiasm surrounding the incoming administration, dissatisfied shareholders are entering the 2009 proxy season with ideologies and strategies poised to influence the corporate paradigm.

Over the past year, shareholders witnessed a whirlwind of disaster as Wall Street firms imploded, 401(k) plans and stock values deflated and billion dollar write-offs were followed by a tightened credit freeze ushering in a $700 billion federal bailout plan. Amid all of this turmoil, shareholders are seeking to alter the corporate practices that they believe caused the economic downturn. In the aftermath of 2008, corporations should expect that shareholder proposals will be more critical of corporate governance and executive compensation.