BIO Applauds House Passage of the Corporate Governance Reform and Transparency Act

Today, the Biotechnology Innovation Organization (BIO) applauds the House of Representatives for passing H.R. 4015, the Corporate Governance Reform and Transparency Act.  This bipartisan bill, sponsored by Reps. Sean Duffy (R-WI) and Gregory Meeks (D-NY), was approved by a 238-182 vote.

H.R. 4015 would provide for oversight by the Securities and Exchange Commission (SEC) of proxy advisory firms, ensuring that they operate within appropriate boundaries and are accountable to regulators and the public. 

The following statement may be attributed to BIO President and CEO Jim Greenwood:

“By enhancing transparency at proxy advisory firms, this legislation would improve the quality of information available to shareholders as they consider their views on public companies’ corporate governance policies. Proxy votes are the primary means of shareholder engagement with company management, and this bill would ensure that the proxy process is working well for both investors and issuers.

“By requiring proxy advisory firms to minimize conflicts of interest and enhance issuer dialogue, H.R. 4015 would improve the quality of the recommendations disseminated to shareholders and ensure that breakthrough innovation remains at the forefront of company decision-making.

“BIO thanks Representatives Duffy and Meeks for their leadership on this important issue.”