Waukesha Times

On September 19, 2024, Congressman Scott Fitzgerald (WI-05) announced the passage of his bill, the Performance Over Politics Act, on the House floor.

“While shareholder engagement remains an important aspect of corporate governance, the consideration of shareholder proposals that deviate from the company’s strategic direction or long-term goals has transformed boardrooms into partisan platforms where political agendas overshadow sound financial management,” said Rep. Fitzgerald. “In an effort to curb the growing politicization of shareholder meetings, I was pleased to see my legislation—Performance Over Politics Act—pass as part of the Prioritizing Economic Growth Over Woke Policies Act on the House floor today. My bill works in unison with the larger legislative package to counter the political ESG movement and strengthen our financial system.”

The Performance Over Politics Act permits issuers to set aside for three years resubmission of shareholder proposals that are substantially similar to proposals that received less than 10% of the vote once in the previous five years, received less than 20% twice in the previous five years, or received less than 40% three times in the previous five years. A 2009 study noted that costs directly incurred by companies due to such proposals were estimated at $87,000 per proposal, totaling $90 million annually. The goal of the bill is to respect the decisions of the majority of shareholders and encourage more public companies while removing politics from boardrooms.

This bill was passed as a part of H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act.

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