Before the bottom fell out of the financial services industry and companies in other industries began to prove that the domino effect is alive and well, support for shareholder resolutions on executive compensation seemed to be losing momentum. The SEC issued stringent compensation disclosure requirements, which may have partially placated the concerns of some corporate watchdogs about exorbitant pay packages, and if stocks perform well, CEO support is the norm.
It’s official. Mary L. Schapiro was sworn in this morning as the 29th Chairman of the SEC. Of course, there is some speculation as to whether Schapiro will be the last chairman of the 75-year-old agency. We are hinting at the much-discussed possibility that someday soon the SEC will merge with Commodities Futures Trading Commission, where Schapiro once served as chairwoman. For the moment, we’ll stay focused on the day’s welcome announcement.
Today’s press announcement quotes the agency’s 29th Chairman: “I’m honored and grateful to be entrusted with leading this agency during such an important time – when the SEC must effusively be the investor’s advocate. Working with my fellow Commissioners and the agency’s talented staff, we will be committed to reinvigorating a financial regulatory system that must protect investors and vigorously enforce the rules. We will work to deepen the SEC’s commitment to transparency, accountability, and disclosure while always keeping the needs and concerns of investors front and center.”
The Washington Post reports that legislation brewing in the House Financial Services Committee would put the U.S. Federal Reserve, “or less likely another government agency, in charge of protecting the stability of the entire [financial] system.”
As Mary Schapiro prepares to be sworn in as SEC chairman, we are eager to hear how the veteran regulator may already be seeking to fulfill her pledge to rework those processes that manage tips and whistleblower complaints within the commission. Here’s what Schapiro told the senate banking committee less than two short weeks ago:
“If I’m confirmed, within the first couple of weeks, I would like to create an entirely new process within the commission, so that these matters are centralized, they don’t reside out in multiple offices, but rather come through a central fairly senior point of contact within the agency where they then can be staffed, examined, pursued, tracked and reported to the commission, so we have an understanding of exactly what type of intelligence is coming into the agency and how it’s being followed up on by the staff of the agency.”
Mary Schapiro, President Barack Obama’s pick to lead the beleaguered U.S. Securities and Exchange Commission, was confirmed as SEC Chairman yesterday, after having undergone only a mild grilling before the Senate Banking Committee.
Of course, the biggest question, and one only time may hold the answer to, is this: Which Mary Schapiro will ultimately chair the SEC? Will it be Mary, the affable bureaucrat, or Mary, the diligent enforcer? Few of President Obama’s picks have two so sharply drawn opposing personas — at least in the eyes of the press, which, given the recent duality of opinion around Schapiro, might lead some to suspect that President Obama’s SEC pick has a body double.
To date, her resume seems to offer as much supporting evidence for those who argue that she’ll be a light touch regulator as it does for those who think that she’ll become an aggressive enforcer.
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