US SEC plans to weaken retail investors' proposal rights, Microsoft pledges to maintain the current threshold for one year.

Microsoft (MSFT.O) will continue reviewing shareholder proposals ahead of its next annual general meeting, a move requested by activist Paul Chesser to protect investor rights amid the U.S. Securities and Exchange Commission’s (SEC) planned tightening of shareholder proposal rules. According to reports, Microsoft will retain the current threshold for investors to submit resolutions, even as the SEC considers related changes – which critics say would marginalize groups that have held sway for decades, including individual investors, religious organizations, and labor unions. The one-year agreement could effectively counter the SEC’s efforts to shift power from investors to executives. Chesser hopes Microsoft’s action will set a governance model to ensure retail investors have a voice. A Microsoft spokesperson stated that in light of the SEC’s announcement of a review of its shareholder proposal regulatory framework, the company agreed to maintain the current eligibility threshold for one year to provide a clear, predictable process for the next proxy season.