News | 04.12.19
White House Energy Infrastructure Order Calls for ERISA, Proxy Voting Review
President Donald Trump ordered the Department of Labor to see whether retirement plans engaging with energy companies on environmental, social, and governance issues comply with ERISA, as part of two executive orders issued Wednesday to promote energy infrastructure development. The ERISA review portion of the order notes that "companies owe a fiduciary duty to their shareholders to strive to maximize shareholder return, consistent with the long-term growth of a company." That section also calls on the Labor secretary to review guidance on proxy voting "to determine whether any such guidance should be rescinded, replaced, or modified to ensure consistency with current law and policies that promote long-term growth and maximize return on ERISA plan assets."
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