Corporate Governance

Manufacturers depend on public markets to finance business growth, job creation and economic expansion, and workers rely on the success of publicly traded companies for their savings and retirement. Policymakers should rein in unregulated third parties, enable manufacturers to engage effectively with their shareholders and protect middle-class investors.

Key Facts

93%
of manufacturers agreed the federal tax code should help reduce manufacturers’ costs for conducting R&D and accessing capital
67%
of manufacturers cited the inability to attract and retain employees as their top primary challenge
59%
of manufacturers cited an unfavorable business climate as a primary business concern

Supporting Capital Formation and Protecting Investors

Manufacturers depend on the public capital markets to finance business growth, job creation and economic expansion. Manufacturing workers, meanwhile, may rely on the success of publicly traded companies to help them invest for a new home, a child’s education or a secure retirement.

Lawmakers should take steps to protect manufacturing families and support the development of the manufacturing economy. Reducing the influence of unregulated third parties, reinforcing all market actors’ fiduciary duty to investors, strengthening the U.S. pension system and ensuring companies can focus on long-term growth and economic expansion will give manufacturers—and all Americans—the ability to create a more prosperous future for themselves and their families.

 

From small businesses seeking early stage financing to publicly traded companies navigating the capital markets, the NAM’s corporate governance advocacy is critical to supporting the growth of manufacturers across the country. By ensuring that policymakers in D.C. understand our industry, the NAM is preserving manufacturers’ ability to finance growth, R&D and job creation while also protecting the investments of millions of Americans who depend on manufacturing for a secure retirement.
— Nicole Wolter, President and CEO, HM Manufacturing Inc.

What Should We Do Now?

Below are critical policy recommendations that Congress and the president should act on to promote a corporate governance agenda for the future.

READ MORE IN OUR AGENDA FOR CAPITAL FORMATION AND CORPORATE GOVERNANCE

  1. 1
    Depoliticize the proxy process by adopting new Securities and Exchange Commission rules to rein in proxy advisory firms and reform shareholder proposals.
  2. 2
    Ensure that fund managers and ERISA fiduciaries fulfill their fiduciary duty to everyday investors and pensioners when engaging in proxy voting.
  3. 3
    Update Regulation S-K and ensure that any disclosure obligations focus on material information relevant to company performance and shareholders’ investing decisions.
  4. 4
    Modernize the SEC’s filer definitions and tailor disclosure rules to ease regulatory burdens on small and mid-cap manufacturers.
  1. 5
    Streamline the SEC’s executive compensation rules to reduce costs for public companies and improve the usefulness of information provided to investors.
  2. 6
    Scale back the SEC’s 2024 climate disclosure rule to make the requirements more workable for companies and ensure that investors have access to material information about manufacturers’ efforts to combat climate change.
  3. 7
    Increase ownership transparency to help manufacturers engage more effectively with their investors.
  4. 8
    Help private manufacturers raise capital by providing permanent relief from Rule 15c2-11 for fixed-income securities and by allowing more individuals to qualify as accredited investors.

Share Your Voice

By sharing our voices, manufacturers play a vital role in advocating for the ability of all Americans to create a more prosperous future for themselves and their families.

We encourage you to share with us your thoughts on why policymakers should help support a capital formation and corporate governance agenda for the future. In doing so, you’re helping to equip the NAM with our most powerful advocacy tool: the manufacturing voice.