William Donaldson, the chairman of the Securities and Exchange Commission, is moving ahead with his proposal to change how corporate directors are elected. He believes the current system is flawed because the incumbent board nominates a slate and the ballot only reflects their choices. It appears that the new rule may not allow brokerage firms that hold shares for investors to vote for incumbent directors without the permission of the actual owner. His proposal has angered America's largest companies and is not supported by the Bush Administration.
See "Who Cares if Bosses are Angry?", Floyd Norris, International Herald Tribune, May 6, 2004