Dechert Releases Insights on Post-Election Regulatory Shift in Corporate Governance

Recently, Dechert LLP released an update titled “Post-Election Regulatory Changes to Corporate Governance Mirror Broader Political Shift” which details recent shifts in the corporate governance space. The news alert highlights several areas of interest including the SEC’s directive to pause the climate-disclosure rule litigation in the 8^th Circuit and new guidance on beneficial ownership reporting.

In addition, the news alert notes that Nasdaq dropped from Nasdaq’s Listing Rules a requirement that listed companies either maintain at least two diverse directors on their board of directors or explain why they are unable to comply. According to the alert this action “follows the Fifth Circuit Court of Appeals’ decision striking down the SEC order approving the Nasdaq rule.” Furthermore, proxy advisory firm ISS announced that it will suspend, “consideration of the gender and racial and/or ethnic diversity of a company’s board when making recommendations regarding the election or re-election of directors for U.S. companies.” Glass Lewis has also announced changes to its voting policies in this space. According to the alert, the change in administration has brought about “an increased skepticism at the federal level for ESG-related initiatives and shareholder engagement.”

Click here to read the Dechert regulatory update on corporate governance.