Two investor groups recently filed proxy proposals to try to compel companies to adopt auditor rotation policies. But so far, they aren't getting anywhere.
The United Brotherhood of Carpenters Pension Fund and the Sheet Metal Workers' National Pension Fund have submitted proxy proposals to dozens of companies asking management to give shareholders an opportunity to vote at the next annual meeting on an audit firm rotation policy. The proposals say companies should limit the engagement of the external audit firm to seven years, with a three-year cooling off period before the same firm could be rehired.
“We think shareholders should be ...