Microsoft Resists SEC Rule Change with One-Year Commitment to Shareholder Proposals

Microsoft has agreed to continue considering shareholder proposals at its annual meetings through next year, despite a proposed rule change by the U.S. Securities and Exchange Commission (SEC) that would reduce oversight of investor rights.

The agreement was reached with conservative activist Paul Chesser, who hopes it will become a corporate-governance model for other companies to follow.

The SEC's proposal has been met with criticism from activists, who say it would sideline individual investors and give more power to corporate executives.

Microsoft's decision is seen as a way to preserve investor rights, at least for the next year. Chesser said he hopes other companies will follow Microsoft's lead.

The SEC has proposed ending its oversight of the resolutions process and moving it to state officials, which activists see as a shift away from investors toward managers.