SEC reviewing shareholder voting process; may change rules to make system more efficient

SEC reviewing company proxy process

WASHINGTON — Federal regulators are reviewing the process by which company shareholders exercise their votes and said they may change the rules to make the system more transparent.

The Securities and Exchange Commission took a step Wednesday toward that goal by voting to issue a document raising questions about the corporate proxy system and seeking public comment on it. The document also raises questions about the accuracy and transparency of the voting process, and whether some practices by professional investors can improperly influence voting results.

The SEC review comes at a time when investors, hurt by the financial crisis, are angry about extravagant compensation packages for executives and want more say over how much they are paid.