Bill · H.R. 52· House(119-HR-52)
Stop Woke Investing Act
- Introduced
- 1/3/2025
- Last activity
- 1/3/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Andy Biggs
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
The Stop Woke Investing Act requires the Securities and Exchange Commission to amend its rules regarding shareholder proposals. It mandates changes to how companies include proposals on their proxy cards for annual or special shareholder meetings. Under the bill, companies would be subject to specific limits on the number of shareholder proposals they must include based on their filer status. Additionally, a proposal can only be included if it has a material effect on the company's financial performance. The act also defines "material" to exclude goals related to environmental, social, political, or ideological objectives.
Yes
Would business owners be better off under this?+5
The bill provides certainty and reduces the volume of shareholder proposals that corporate leadership must manage.
Would people with substantial wealth be better off under this?+4
The bill may benefit high net worth individuals who prioritize strictly pecuniary returns by limiting the influence of non-financial shareholder proposals.
Does this make it easier to run a small business?+3
The bill reduces the administrative burden on companies by capping the number of shareholder proposals they are required to include on proxy cards.
The opposite
Does this better protect air, water and wildlife?-4
The bill's definition of materiality specifically excludes environmental goals, which may limit shareholder influence on environmental protection issues.
Would Black Americans be better off under this?-3
Limiting shareholder proposals to strictly financial matters may reduce the ability to address social justice issues through corporate governance.
Does this narrow racial gaps in how people are treated?-3
By excluding social and political goals from the definition of materiality, the bill may limit the ability of shareholders to advocate for racial equity initiatives.
Who it would affect, and how
Potential Positive Impacts for People
-
Limiting the number of proposals: The bill sets specific caps on the number of shareholder proposals a company is required to include, such as no more than 2 for non-accelerated filers, 4 for accelerated filers, or 7 for large accelerated filers (Section 2(b)(1)).
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Focusing on financial performance: By requiring that a proposal must have a material effect on the company's financial performance to be included, the bill aims to prioritize financial outcomes (Section 2(b)(2)).
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Excluding non-financial goals from materiality: The bill defines "material" in a way that excludes furthering nonpecuniary, environmental, social, political, or ideological goals (Section 2(a)(3)(B)).
Potential Negative Impacts for People
-
Restriction of shareholder voice: The bill limits the number of shareholder proposals a company is required to include, which may restrict the diversity of topics presented to shareholders (Section 2(b)(1)).
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Exclusion of specific objectives: By defining "material" to exclude environmental, social, political, or ideological goals, the bill prevents these specific types of objectives from being considered material financial risks or returns (Section 2(a)(3)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For High Net Worth Individuals+4Good For African Americans-3
- Environment Energy And Infrastructure
- Improves Environmental Protections-4
- Economy And Finance
- Improves Small Business Support+3
- Social Issues And Justice
- Improves Racial Equity-3
- 1/3/2025
- Referred to the House Committee on Financial Services.
- 2 Cosponsors added.
- Introduced in House
Elijah CraneRepublican · Arizona
Andrew OglesRepublican · Tennessee