Investing.com investing.com 02 Jan, 2021 07:45 am

U.S. Labor Department finalizes limits on pension-fund voting on corporate proxies By Reuters

U.S. Labor Department finalizes limits on pension-fund voting on corporate proxies By Reuters
U.S. Labor Department finalizes limits on pension-fund voting on corporate proxies

Signage is seen at the United States Department of Labor headquarters in Washington, D.Department of Labor on Friday finalized a rule requiring pension funds to vote on shareholder proposals only when there is an economic reason, a change that would curb investors from casting their ballots on many corporate proxies.Last month, the Department of Labor finalized a rule clarifying that pensions must put retirees' financial interests first when allocating investments, rather than other concerns such as climate change or racial justice.The rule "makes clear" that pension fund managers do not have to vote every corporate proxy, said Jeanne Klinefelter Wilson, acting assistant secretary at the Department of Labor, on a call Friday afternoon.

The Department of Labor's move to rein in voting comes as shareholder initiatives on topics like climate change have gained more backing.Her office in prepared materials said, "It is clear that the Department of Labor wrote this rule to prevent workers from using their voices to influence public companies.

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