2008: SEC staff ruled that companies may exclude proxy access proposals from 2008 proxy statements

• SEC allows exclusion following adoption of changes to
  Rule 14a-8(i)(8)

• See 2008 SEC No-action letters immediately below

2007: Overview of developments following 2nd Circuit ruling in AFSCME v AIG

• Shareholder proposals

• Hewlett-Packard  Proponent: AFSCME
• Reliant Energy  Proponent: Seneca
• UnitedHealth Group  Proponent: AFSCME

• Voluntary adoption

• Comverse Technology

See also Reimbursement of Proxy Expenses

Follow related developments:

• Shareholder Face-to-Face Meetings  Pfizer
• Electronic Shareholder Forums  Verizon, AMERCO

2008: Excludable per Rule 14a-8(i)(8)

• Each proposal called for bylaw amendment
• Body of SEC response letters

• There appears to be some basis for your view that _______ may exclude the proposal under rule 14a-8(i)(8). Accordingly, we will not recommend enforcement action to the Commission if _______ omits the proposal from its proxy materials in reliance on rule 14a-8(i)(8).

Bear Stearns  AFSCME

Croghan Banchares  Samuel R. Danziger 

E*Trade  AFSCME

JP Morgan Chase  AFSCME

Kellwood Company  CalPERS

• Commentary

• RiskMetrics (ISS)  1.11.08
• RiskMetrics (ISS)  2.12.08

2008: Other grounds for exclusion

• Longs Drug Stores  1.23.08 

• Excludable under Rule 14a-8(a) because it does not recommend or require the board of directors to take any action

2008 withdrawn proposals

• Professor Bebchuk, proponent

• Consolidated Edison  2.05.08
• International Paper  2.05.08 
• Xerox  2.05.08 
• Omnicom Group  2.04.08 
• Home Depot  2.01.08 
• Time Warner  2.01.08 
• Exxon Mobil  1.31.08 
• Gap  1.31.08
• McDonald's  1.31.08 
• Schering-Plough  1.31.08
• El Paso  1.23.08 

• Other proponents

• Moody's  (Rossi - Chevedden) 1.29.08
• Lear  (New York City Employees)  1.25.08 
• Verizon Communications (Rehm) 1.22.08 

2007  more 2007 archive information

• UnitedHealth Group  3.29.07

• CalPERS
• Company withdrew opposition and included proposal
• Got 45.3% vote FOR

• Reliant Energy  2.23.07

• Seneca Capital
• Proposal was withdrawn

• Hewlett-Packard  1.22.07

• AFSCME
• SEC takes no position following AFSCME v AIG
• HPQ included proposal
• 2007 proxy statement

Stockholder proposals calling for reimbursement of proxy expenses in contested election of directors

• AFSCME intends to submit proposals for 2008 season
• Proposals similar to proposal submitted to Apache Corporation in 2007 proxy season
• Under new proxy access rules, SEC staff has taken position that proposal may not be excluded under Rule 14a-8(i)(8) if it relates to ... reimbursement of shareholder expenses in contested elections

AFSCME submitted proposal to Apache ... again 

• Apache Corporation  3.31.08

Rule 14a-8(i)(8)

AFSCME v AIG